|Homogenous expectations assumption|
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Definition of Homogenous expectations assumption
Homogenous expectations assumption
An assumption of Markowitz portfolio construction that investors
Related: pure expectations theory.
Economic environment in which the firm expects to reside over the life of the
Theories of the term structure of interest rates which include the pure
Theory that expected spot exchange rate equals the forward rate.
A form of the pure expectations theory which suggests that the returns on bonds
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.
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.
an assumption made about the rates of return that will be earned by intermediate cash flows from a capital project; NPV and PI assume reinvestment at the discount rate; IRR assumes reinvestment at the IRR
A variant of pure expectations theory which suggests that the return that an
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