Biased Expectations Theories

Business / Finance / Biased Expectations Theories: Related: Pure expectations theory.
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Other Words for Biased

Biased Adjective Synonyms: biased, prejudiced, partial, warped, distorted, jaundiced
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Pure Expectations Theory

Business / Finance / 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 rates. For e MORE

Rational Expectations

Business / Finance / 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. MORE

Unbiased Predictor

Business / Finance / Unbiased Predictor: The unexpensed portion of the difference between the price paid for a security and its par value. MORE

Return-To-Maturity Expectations

Business / Finance / 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-coupon bond MORE

Local Expectations Theory

Business / Finance / Local Expectations Theory: A form of the pure expectations theory that suggests that the returns on bonds of different maturities will be the same over a short-term investment horizon. MORE

Expectations Hypothesis Theories

Business / Finance / 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. MORE