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The null hypothesis suggests that results are random, while investors search for a relationship that, if identified, could be used to create better performance. For example, one investor's null hypothesis might be: Stocks in the S&P 500 index that have P/E ratios above 20 will have no difference in annual returns as stocks in the S&P 500 index ...
Put another way, there is more evidence in favor of the alternative hypothesis. If the hypothesis tester decided that 1% would indicate a level of significance, however, a p-value of 0.0175 would indicate acceptance of the null hypothesis. Related Terms to P-Value. Null Hypothesis. Altman Z-Score (how statistics is used in stock investing)
InvestingAnswers' glossary of financial definitions and business terms that begin with the letter "N"
Rescission Definition. Rescission is the cancelling of a contract so that it is no longer legally binding. A court can release parties from any obligations under the contract and revert them to their positions before the contract was executed.
The 'segmented market hypothesis' states that different investors confine themselves to certain maturity segments, making the yield curve a reflection of prevailing investment policies. Because the yield curve is generally indicative of future interest rates, which are indicative of an economy 's expansion or contraction, yield curves and ...
The Fisher Effect is an economic hypothesis stating that the real interest rate is equal to the nominal rate minus the expected rate of inflation. How Does the Fisher Effect Work? In the late 1930s, U.S. economist Irving Fisher wrote a paper which posited that a country's interest rate level rises and falls in direct relation to its inflation ...
Expectations theory suggests that the forward rates in current long-term bonds are closely related to the bond market's expectation about future…
When a large volume of government borrowing pushes up interest rates, the "crowding out effect" makes it difficult for individuals and companies to get…
This implies that short-term bonds carry less interest rate risk than long-term bonds, and some financial theorists cite this as support for a popular hypothesis that the higher yields of long-term bonds include a premium for interest rate risk.
What is an Expiration Date? The expiration date is the last day an options contract can be exercised. After that, the contract becomes null and void.