In the market segmentation theory:
A) the investors would consider investing shorter term than their investment horizon if they expect an increase in the interest rates.
B) an additional reward must be offered to investors to invest in a maturity that is not their favourite.
C) the investors only supply funds for securities with a maturity corresponding to their investment horizon.
D) a change in yield in one segment affects other segments at once.
Correct Answer:
Verified
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