Question: The expectations hypothesis states that a. forward rate equals the expected future short rate. b. Risk-averse investors require a premium for holding long-term securities c.

The expectations hypothesis states that

a.

forward rate equals the expected future short rate.
b.

Risk-averse investors require a premium for holding long-term securities
c.

The upward sloping yield curve is not necessarily an indicator of higher expected interest rates in the future
d.

All of the above

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