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Stable Paretian, or Fractal Hypothesis |
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Stable Paretian, or Fractal HypothesisIn the characteristic function of the fractal family of distributions, the characteristic exponent alpha can range between one and two. See: Alpha, Fractal Distributions, Gaussian.Stable Paretian, or Fractal Hypothesis Similar MatchesCoherent Market HypothesisCoherent Market HypothesisA hypothesis that the probability density function of the market may be determined by a combination of group sentiment and fundamental bias. Depending on combinations of these two factors, the market can be in one of four states: random walk, unstable transition, chaos, or coherence. Expectations hypothesis theoriesExpectations hypothesis theoriesTheories 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. These theories hold that each forward rate equals the expected future interest rate for the relevant period. These three theories differ, however, on whether other factors also affect forward rates, and how. Local expectations hypothesis (LEH)Local expectations hypothesis (LEH)Theory that bonds similar in all aspects except maturity will have the same holding-period rate of return. Prebisch-Singer HypothesisPrebisch-Singer HypothesisThe idea that the relative prices of primary products would decline over the long term, and therefore that developing countries that were led by comparative advantage to specialize in them would find their prospects for development diminished. Due to Prebisch (1950) and Singer (1950). Overreaction hypothesisOverreaction hypothesisThe supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections. Further SuggestionsLiquidity preference hypothesisUnbiased expectations hypothesis |
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