55、According to the market segmentation theory, an upward sloping yield curve is most likely due to:

A. investor expectations that short-term interest rates will rise in the future.

B. different levels of supply and demand for short-term and long-term funds.

C. an increasing yield premium required by investors for bearing interest rate risk.

D. investors shifting out of their preferred maturity sector into shorter-term securities.

[此贴子已经被作者于2008-11-7 15:07:54编辑过]

Correct answer = B

"Understanding Yield Spreads," Frank J. Fabozzi
2008 Modular Level I, Vol. 5, p. 351
Study Session 15-65-c
explain the basic theories of the term structure of interest rates and describe the implications of each theory for the shape of the yield curve
The market segmentation theory asserts that the supply and demand for funds determine the interest rates for each maturity sector. 

b