In Relation to the Term Structure of Interest Rates,the Expectations

Multiple Choice

In relation to the term structure of interest rates,the expectations theory assumes:

A) there are a large number of financial investors who hold heterogeneous expectations about future interest rates.
B) investors need to take into account costly transactions as they change their expectations.
C) long-term rates paid bonds will be equal to the average of short-term interest rates expected to prevail over the longer term period.
D) there is some impediment to market rates moving to equilibrium.