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4. An investor is considering investing for a five-year period using these two alternatives: (1) purchase...

4. An investor is considering investing for a five-year period using these two alternatives: (1) purchase a 5-year security, or (2) purchase a one-year security and “rolling over” into successive one-year securities over the next 5 years. Which strategy provides the highest expected rate of return according to the pure expectations hypothesis? Explain why. …..According to the liquidity preference hypothesis? Explain why.

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