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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.
Textbook 
Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
Authors:
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vehmeinvehmein
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6 years ago
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kolitchko Author
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6 years ago
Thank you, thank you, thank you!
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You make an excellent tutor!
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This site is awesome
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