The maturity risk premium reflects a preference by many lenders for:

A) shorter maturities.
B) reducing yields.
C) high yield securities.
D) longer maturities.

The maturity risk premium reflects a preference by many lenders for shorter maturities because they are generally perceived as less risky compared to longer maturities. Longer-term investments are more exposed to interest rate changes and other uncertainties, thus requiring a premium to compensate for the increased risk.