On the Bias of the Unbiased Expectation Theory
The unbiased expectation theory stipulates that long-term interest rates are determined by the market’s expectations of future short-term interest rates. According to this hypothesis, if investors have unbiased expectations about future interest rate movements, the forward interest rates should be g...
Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
MDPI AG
2023-12-01
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Series: | Mathematics |
Subjects: | |
Online Access: | https://www.mdpi.com/2227-7390/12/1/105 |