The theory that short and long term securities are not substitutes for each other but rather that there are separate markets for each is
A)the preferred habitat theory.
B)the modified expectations theory.
C)the segmented markets hypothesis.
D)the expectations theory modified by the preferred habitats theory.

Question

Quizplus · Accepted Answer

The theory that short and long term securities are not substitutes for each other but rather that there are separate markets for each is known as the segmented markets hypothesis. The other answer choices are not relevant to this theory.

The Theory That Short and Long Term Securities Are Not