The unbiased expectations hypothesis states that any two investment strategies that are available in the market and that involve assets which differ only by their terms to maturity, should yield the same holding period return for the investor.

Question

Quizplus · Accepted Answer

The unbiased expectations hypothesis suggests that the expected returns on different maturity investments should be equal when adjusted for risk, assuming investors have no preference for one maturity over another.

The Unbiased Expectations Hypothesis States That Any Two Investment Strategies