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kolitchko kolitchko
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6 years ago
The key assumption of the liquidity premium theory is that investors
A) view bonds of different maturities as perfect substitutes.
B) view bonds of different maturities as completely unsubstitutable.
C) always choose the bond with the highest expected return, regardless of maturity.
D) care about both expected returns and time to maturity.
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Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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vehmeinvehmein
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kolitchko Author
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6 years ago
Thanks for your help!!
acaruso
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You make an excellent tutor!
Butwhy
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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