hypothesis
in empirical research, assertion made about some property of elements being studied. Such an assumption is made early in the investigation, guiding the investigator in searching for supporting data.
Hypothesis test
Definition: Setting up and testing hypotheses is an essential part of statistical inference.
Fisher hypothesis
The Fisher hypothesis is that, in the long run, inflation and nominal interest rates move together, meaning that real interest rates are stable in the long term. This is also called the Fisher effect.
Null hypothesis
In classical hypothesis testing, we take the null hypothesis as true and require the data to provide substantial evidence against it.
The hypothesis that securities are typically in equilibrium--that they are fairly priced in the sense that the price reflects all publicly available information on the security.
Related Terms:
Auction markets ...
Expectations Hypothesis
One basic theory of the term structure of interest rates is that short-term and long-term interest rates are linked by the expectations hypothesis.
Efficient Market Hypothesis
A market theory that evolved from a 1960's Ph.D. dissertation by Eugene Farma, the efficient market hypothesis states that at any given time and in a liquid market, security prices fully reflect all available information.
RATIONAL EXPECTATION HYPOTHESIS (REH)
The expectation on the future realization of an economic variable is rational if the agent uses all the available and useful information to predict it.
Author of the efficient markets hypothesis
Eugene Fama was a tenured professor at the University of Chicago before he was 30, where he taught portfolio theory before modern finance became established.
Stable Paretian, or Fractal Hypothesis
Definition: [crh] In the characteristic function of the fractal family of distributions, the characteristic exponent alpha can range between one and twDefinition: o.
Hypothesis testing - The use of a statistical test to discriminate between two hypotheses at two specific risk (or probability) levels.
Hypothesis:
A statement whose validity is to be determined from sample evidence (verified data).
Null hypothesis
A statement that is being put to the test. In ECONOMETRICS, economists often start with a null hypothesis that a particular variable equals a particular number, then crunch their data to see if they can prove or disprove it, ...
Fisher hypothesis: That the real rate of interest is constant. So the nominal rate moves with inflation.
Capture hypothesis A theory of regulatory behaviour that predicts that the regulators will eventually be captured by the special interests of the industry being regulated.
HYPOTHESIS: A reasonable proposition about the workings of the world that's inspired or implied by a theory and which may or may not be true.
Hypothesis testing involves auditors hypothesizing that an account balance is materially accurate as to existence, ownership, and valuation and then testing the hypothesis with sample-based evidence.
Hypothetical assumption ...
A hypothesis that the probability density function of the market may be determined by a combination of group sentiment and fundamental bias.
5.3 Hypothesis Testing
In order to test these hypotheses, simple regression model in the following form was applied. The regression model was as under:
Y = ? +? X1 + E ...
This hypothesis assumes that the various maturities are perfect substitutes and suggests that the shape of the yield curve depends on market participants' expectations of future interest rates.
[+] Hypothesis testing (2 C, 33 P)
I
[+] Imperfect competition (3 C, 20 P) ...
Life-Cycle Hypothesis (LCH)
The Life-Cycle Hypothesis (LCH) is an economic theory that pertains to the spending and saving habits of people over the course of a lifetime. The concept was developed by Franco Modigliani and his student Richard Brumberg.
random walk hypothesis
Working, Holbrook
The random walk hypothesis is not so much a hypothesis as it is a model that has been found to be surprisingly useful for describing the behavior of prices in various markets, including major equity, ...
Expectations hypothesis theories
Theories of the term structure of interest rates which include the pure expectations theory, the liquidity theory of the term structure, and the preferred habitat theory.
Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections.
Overshooting ...
expectations hypothesis
The theory that the shape of yield curves is determined by investors' collective expectations of future interest rates. See implied forward rates.
Linder Hypothesis
The theory that a country's ability to export depends on domestic demand, so that countries that demand similar goods will trade more with each other than will countries with dissimilar demands. From Linder (1961).
Coherent Market Hypothesis
A hypothesis that the probability density function of the market may be determined by a combination of group sentiment and fundamental bias.
Fractal Market Hypothesis
The fractal market hypothesis states that (1) a market consists of many investors with different investment horizons, and (2) the information set that is important to each investment horizon is different.
Efficient Market Hypothesis - In Finance, the efficient-market hypothesis (EMH) asserts that financial markets are "informationally efficient", or that prices on traded assets, e.g.
Efficient Market Hypothesis: The theory that a stock's price reflects all available information and reflects its true value.
Emerging Growth Fund: A type of growth mutual fund that invests in stocks of young, growing companies.
efficient market hypothesis the idea that markets adjust rapidly enough to eliminate profit opportunities immediately. (13)
elastic demand demand for which price elasticity is greater than 1. (4) ...
Efficient Market Hypothesis
States that all relevant information is fully and immediately reflected in a security's market price, thereby assuming that an investor will obtain an equilibrium rate of return.
The fractal market hypothesis states that (1) a market consists of many investors with different investment horizons, and (2) the information set that is important to each investment horizon is different.
See: Efficient market hypothesis. Capital market imperfections viewThe view that issuing debt is generally valuable, ...
Founder of the Efficient Markets Hypothesis. Finance professor at the University of Chicago. Financial Accounting Standards Board (F.A.S.B.) Sets accounting standards for U.S. firms. FASB No. 8 U.S. accounting standard that requires U.S.
Developer of the Efficient Markets Hypothesis. Family of funds Different mutual funds offered by one investment company. Far month Used in the context of option or futures to refer to the trading month of the contract that is farthest away.
Liquidity preference hypothesis The argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.
Efficient Market Hypothesis (EMH) An investment theory, which states it is impossible to consistently predict future stock prices and to beat the market because prices already incorporate and reflect all relevant information that is known by all ...
Efficient market hypothesis [r]: The hypothesis that all regulated financial markets are efficient markets. [e] ...
Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of resondents - examples include ...
The dependence of NAIRU on actual unemployment is known as the hysteresis hypothesis. One explanation for hysteresis in a heavily unionized economy is that unions directly represent the interests only of those who are currently employed.
E - earnings yield, economic value added, EVA, efficient markets hypothesis, EMH, equilibrium, excess return, expected return ...
The efficient market hypothesis, believe it or not, suggests that every stock is a basically a hold, neither a buy nor a sell.
According to the efficient market hypothesis (EMH), the difference between an inefficient market and an efficient one comes down to whether participants are rational investors having good information readily available.
The efficient market hypothesis (EMH), a controversial principle stemming from the theory of market efficiency, states that a market cannot be outperformed because all available information is already built into all stock prices.
Market trends are also identified using the efficient market hypothesis. It is based on the concept of financial markets that secure the building blocks for making a decision on what to buy and sell.
The Efficient Market Hypothesis is fallacious and is actually a derivative of the perfect competition model of capitalism.
The hypothesis is that when investors buy stock for its high yield, demand for that stock increases, so the price tends to rise.
Theories including the pure expectations theory, the liquidity theory of the term structure, and the preferred habitat theory, which share a hypothesis about the behavior of short-term forward rates and also assume that the forward rates in current ...
BUBBLES - See Efficient Market Hypothesis (EMH)
BUCK - The 2"x6" outside, unfinished frame of a door or window.
BUCKET SHOP - An illegal brokerage firm that accepts customer orders but does not attain immediate exec...
Definition of Efficiency Wage Theory / Hypothesis
The idea of the efficiency wage theory is that it may benefit firms to pay workers a wage higher than their marginal revenue product.
Unbiased expectations hypothesis
Theory that forward exchange rates are unbiased predictors of future spot rates.
Unbiased predictor ...
Something which supports a claim or hypothesis.
Ex (Point of Origin) ...
devoid of any definite pattern. This assertion, therefore, challenges the very basis of TECHNICAL ANALYSIS, especially CHARTING which rests on the idea of trends in share prices. (See also EFFICIENT MARKETS HYPOTHESIS.) ...
Take your finger slowly away from the trigger or more accurately your mouse. Equity shows no emotion and neither should you. The earnings report is still a month away and your original hypothesis stated that COP would rise much higher than $100.
In the United States, John Bates Clark was notable in the development of marginal utility theory, forming his own hypothesis regarding the distribution of wealth. Classical economics reached its fullest expression at the end of the 19th cent.
There is also substantial and robust support in the empirical literature for the hypothesis of "conditional convergence" - that is, because of diminishing returns to capital, ...
In De Witt's letter, dated the 27th of October 1671 (Ass. Mag. vol. iii. p. 107), he speaks of a "provisional hypothesis" suggested by Hudde, that out of So young lives (who, from the context, may be taken as of the age 6) about 1 dies annually.
 See also: Efficient market, Banks, Expense, Expected return, Capital structure
  
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