The expectations hypothesis cannot explain why:
A) yields on securities of different maturities move together.
B) short-term yields are more volatile than long term yields.
C) yield curves usually slope upward.
D) long-term bonds usually are less liquid than short-term bonds with the same default risk.

Question

Quizplus · Accepted Answer

The Answer of The expectations hypothesis cannot explain why:
A) yields on securities of different maturities move together.
B) short-term yields are more volatile than long term yields.
C) yield curves usually slope upward.
D) long-term bonds usually are less liquid than short-term bonds with the same default risk.

The Expectations Hypothesis Cannot Explain Why