The expectation theory seeks to predict what the short-term interest rate will be in the future based on the current long-term interest rate. The theory is that if an investor invests in two consecutive years in one-year bonds today, instead of investing in two-year bonds today, he can earn the same interest rate. This theory is also known as the neutral expectation theory.
Literal Meanings of Expectations Theory
Meanings of Expectations:
I firmly believe that something will or will happen.
Another term for expected value
Sentences of Expectations
Reality does not live up to expectations
This is equal to 8.5 and is called the stock expectation under study.
Synonyms of Expectations
presumption, projection, calculation, assumption, forecast, supposition, presupposition, belief, prediction, surmise, reckoning, conjecture
Meanings of Theory:
The purpose of adopting ideas or creating systems is to explain something, especially based on general principles, regardless of what is explained.
Sentences of Theory
Darwin's theory of evolution
Synonyms of Theory
thesis, feeling, hunch, conjecture, notion, presupposition, hypothesis, postulation, surmise, speculation, postulate, assumption, proposition, guess, presumption, suspicion, supposition, premise