A portfolio's manager's views on the term structure of interest rates: "Yields reflect expected spot rates and risk premiums. Investors demand risk premiums for holding long-term bonds, and these risk...

Extracted text: A portfolio's manager's views on the term structure of interest rates: "Yields reflect expected spot rates and risk premiums. Investors demand risk premiums for holding long-term bonds, and these risk premiums increase with maturity. This manager's views are most consistent with the: A. Segmented markets theory B. Local expectations theory C. Preferred habitat theory OD. Liquidity preference theory