If research showed that all investors attempt to purchase securities that perfectly match their time in 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 market for bonds is segmented based on the maturity of the bonds, and investors have specific preferences for different maturities. If investors are purchasing securities that match their available funds' timing, it supports the idea that they have specific maturity preferences, aligning with the segmented markets theory.

If Research Showed That All Investors Attempt to Purchase Securities