Homogeneous Expectations

Homogeneous Expectations,

What is Homogeneous Expectations?

Consistent expectations are the assumptions expressed in Harry Marquotz's Modern Portfolio Theory (MPT) that all investors have the same expectations and in some cases make the same decisions.

  • Expectations of Coherence Modern portfolio theory assumes that all investors expect the same things and make the same decisions in all situations.
  • It is pointed out that investors are rational actors and they are not influenced by anything other than the facts of the matter.
  • Critics question this premise, arguing that people and investors are not always rational and have different ideas and goals that influence their thinking.

Literal Meanings of Homogeneous Expectations

Homogeneous:

Meanings of Homogeneous:
  1. Same person

Sentences of Homogeneous
  1. Loggers like to treat wood evenly

Synonyms of Homogeneous

equivalent, cognate, matching, correlative, related, parallel, analogous, corresponding, comparable, kindred, like, congruent, similar, correspondent

Expectations:

Meanings of Expectations:
  1. I firmly believe that something will or will happen.

  2. Another term for expected value

Sentences of Expectations
  1. The reality did not live up to expectations

  2. This is equivalent to 8.5 and is known as the pending action.

Synonyms of Expectations

projection, presumption, forecast, reckoning, conjecture, presupposition, surmise, calculation, belief, assumption, prediction, supposition