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Question: which of the following statements is correct liquidity premium theory...

Question details

Which of the following statements is correct?

 

Liquidity premium theory would imply that ____________________. 

 

A.

people preferring one single long term investment rather than several short term ones if the former has a lower future value.

B.

people preferring one single long term investment rather than several short term ones if the latter has a higher future value.

C.

people preferring one single long term investment rather than several short term ones if they have the same future value.

D.

people preferring several short term investments rather than one single long term one if they have the same future value.

E.

people being indifferent between one single long term investment and several short term ones if they have the same future value.

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