Meaning EXPECTATIONS HYPOTHESIS THEORIES: Theories 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
More terms such as Expectations hypothesis theories in Dictionary E.
- Definition Euroclear:
- Examples principal clearing systems in the Eurobond market. It began operations in 1968, is located in Brussels, and is managed by Morgan Guaranty Bank. Applies mainly to international equities. European expectations hypothesis theories definition.
- Definition Effective Net Worth:
- Examples Net worth plus subordinated debt expectations hypothesis theories explain.
- Definition Efficient Portfolio:
- Examples A portfolio that provides the greatest expected return for a given level of risk (i.e., standard deviation), or, equivalently, the lowest risk for a given expected return expectations hypothesis theories what is.
- Definition Escalator Clause:
- Examples Provision in a contract allowing cost increases to be passed on. In an employment contract, for example an escalator clause may call for wage increases in line with inflation expectations hypothesis theories meaning.
- Definition Education IRA:
- Examples A type of individual retirement account enabling the contribution of up to $500 per year for each child up to the age of 18 by the parents in the family expectations hypothesis theories abbreviation.
