According to the Expectations Theory, If Investors Believed That, for a Holding

Multiple Choice

According to the expectations theory, if investors believed that, for a holding period the average of the expected future short-term yields was greater than the long-term yield, they would act so as to

A) drive up the price of the short-term security and drive down the price of the long-term security.
B) drive down the price of the short-term security and drive up the price of the long-term security.
C) drive down the prices of the short-term and long-term securities.
D) drive up the prices of the short-term and long-term securities.