According to the Expectations Theory of Term Structure,if Investors Believed

Multiple Choice

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

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