Which theory is consistent with an observed concentration of investors in particular segments of the term structure?

Question

Quizplus · Accepted Answer

The segmented market theory is consistent with the observed concentration of investors in particular segments of the term structure.For example,superannuation funds,and to some extent insurance companies,may focus on the longer end of the yield curve in line with expected future cash demands.

Which Theory Is Consistent with an Observed Concentration of Investors