If research showed that all investors attempt to purchase securities that perfectly match the time for which they will have available funds, this would specifically support the argument made by the
A)liquidity premium theory.
B)real interest rate theory.
C)expectations theory.
D)segmented markets theory.

Question

Quizplus · Accepted Answer

The segmented markets theory suggests that the bond market is segmented on the basis of maturity, with investors choosing bonds that match their specific time needs for funds. This theory would be supported by research showing investors attempt to purchase securities that perfectly match the time for which they will have available funds, as it aligns with the idea that investors have preferences for bonds of specific maturities based on their individual investment horizons.

If Research Showed That All Investors Attempt to Purchase Securities