Related Words

Hypothesis: An idea that can be experimentally tested; an idea with the lowest level of confidence.

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

Efficient Market Hypothesis: The combinations of securities portfolios that maximize expected return for any level of expected risk, or that minimizes expected risk for any level of expected return. Pioneered by Harry Markowitz.

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.

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.

Nebular Hypothesis: A theory of the formation of the planets that states that a rotating nebula contracted and was then torn into fragments by centrifugal forces, with planets condensing from the fragments.

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.