One of the Following Statements Is Not Part of the Segmented

Multiple Choice

One of the following statements is not part of the segmented markets (hedging-pressure) theory of the yield curve. Which one is not?

A) All maturities of securities are perfect substitutes in the minds of investors
B) Many large institutional investors are risk minimizers
C) Many investing institutions follow the hedging principle
D) The market for medium-term securities attracts different investor groups than the long-term security market
E) All of the above statements are consistent with the segmented-market theory