|Expectations hypothesis theories
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Definition of Expectations hypothesis theories
Expectations hypothesis theories
theories of the term structure of interest rates which include the pure
Related: pure expectations theory.
In general the hypothesis states that all relevant information is fully and
An assumption of Markowitz portfolio construction that investors
The argument that greater liquidity is valuable, all else equal. Also, the
A form of the pure expectations theory which suggests that the returns on bonds
The supposition that investors overreact to unanticipated news, resulting in
A theory that asserts that the forward rates exclusively represent the expected
The idea that people rationally anticipate the future and respond to what they see ahead.
A variant of pure expectations theory which suggests that the return that an
Theory that expected spot exchange rate equals the forward rate.
Belief that an effort to keep unemployment below its natural rate results in an accelerating inflation.
Theory that individuals base current consumption spending on their perceived long-run average income rather than their current income.
The best forecasts that can be made given the data available and knowledge of how the economy operates. Rational expectations implies random errors, no systematic errors.
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.
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