Question: The expectations hypothesis states that forward rate equals the expected future short rate Risk-averse investors require a premium for holding long-term securities The upward sloping
The expectations hypothesis states that
| forward rate equals the expected future short rate | ||
| Risk-averse investors require a premium for holding long-term securities | ||
| The upward sloping yield curve is not necessarily an indicator of higher expected interest rates in the future | ||
| All of the above |
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