Null hypothesis
In classical hypothesis testing, we take the null hypothesis as true and require the data to provide substantial evidence against it. |
Similar financial terms
Alternative HypothesisThe hypothesis against which the null hypothesis is tested.
Overreaction hypothesis
The supposition that investors overreact to unanticipated news, resulting in exaggerated movement in stock prices followed by corrections.
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.
