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