Which theory explains the shape of the yield curve by considering the relative demands for various maturities?
Question:
Which theory explains the shape of the yield curve by considering the relative demands for various maturities?
a. Relative strength theory
b. Segmentation theory
c. Unbiased expectations theory
d. Liquidity premium theory.
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The answer is b Segmentation theory Heres why Segmentation theory proposes that different market par...View the full answer
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