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Basic Question 7 of 10

Segmented markets theory suggests the shape of the yield curve is determined mainly by:

A. supply and demand for funds of a particular maturity.
B. investor expectations.
C. liquidity premiums.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain traditional theories of the term structure of interest rates and describe the implications of each theory for forward rates and the shape of the yield curve;

CFA® 2025 Level II Curriculum, Volume 4, Module 26.