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The implication of the expectations theory that expected returns for a holding period must be the same for bonds of different maturities depends on the assumption that________.

1. Yiels curves usually slope downward
2. Yiels curves usually slope downward
3. Instruments with different maturities are perfect subtitute
4. Savers are usually risk averse

User GianArb
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1 Answer

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Answer:

i think the answer is intruments with different matuirties are perfect subtitute. i'm not sure but i think this is the answer.

Step-by-step explanation:

User Kevin Markham
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