Related Words

Expectations Hypothesis Theories: Refers to options that are more complex than simple puts or call options. For example, a Caput is a call option on a put option.

Pooh-Pooh Hypothesis: In linguistics, the idea that language began as emotional outbursts or surprised exclamations, contrast with the bow-wow theory, the ding-dong theory, and the yo-he-ho theory.

Overreaction Hypothesis: The supposition that investors overreact to unanticipated news, resulting in exaggerated movements in stock prices followed by corrections.

Pure Expectations Theory: A theory that asserts that forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the market's expectations of future short-term ra . . . View Full Definition

Out Of Africa Hypothesis: Holds that modern human populations (Homo sapiens) are all derived from a single speciation event that took place in a restricted region in Africa.

Return-To-Maturity Expectations: A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-co . . . View Full Definition

Whorfs Hypothesis: A proposal that language affects how its speakers perceive and react to the world--and that the limitations of language thus become the limitations of human thought. Although first set forwa . . . View Full Definition

Stability-Time Hypothesis: Hypothesis that states that higher diversity occurs in habitats that are ancient and stable environmentally

One Gene, One Enzyme Hypothesis: Holds that a single gene controls the production, specificity, and activity of each enzyme in a metabolic pathway. Thus, mutation of such a gene changes the ability of the cell to carry out . . . View Full Definition

Rational Expectations: The idea that people rationally anticipate the future and respond today to what they see ahead. This concept was pioneered by Nobel Laureate, Robert E. Lucas, Jr.