Which of the following yield curve theories expect investors to stay in one maturity segment, regardless of opportunities in other maturity segments?
A) expectations theory
B) liquidity preference theory
C) market segmentation theory
D) preferred habitat theory

Question

Quizplus · Accepted Answer

Market segmentation theory suggests that investors have specific maturity preferences and will not move to different segments regardless of potential opportunities elsewhere.

Which of the Following Yield Curve Theories Expect Investors to Stay