Joint hypothesis (English Joint Hypothesis) is a term established in the economic literature for the determination of the efficiency of the capital market.

It describes the following situation: If all available information is fed in the commercial system in the courses and/or, no over net yield can be determined to obtain with acceptance (hypothesis 1) in an efficient market. Obtains one a over net yield does not have however yet to mean nevertheless that the market is inefficient. Rather this can be also result by an investor entered higher risks. In order to compute and the efficiency of the market confirm this risk, one needs now again a model (hypothesis 2). Usually this happens on the assumption of a eat Pricing model like the Capital ate Pricing Model (CAPM) or the arbitrage Pricing Theory (APT). With a Falsifizierung of the market efficiency now the question is to be considered that the negative result can be caused also by the test model.

Literature

• Fama, Eugen F.: Efficient Capital Markets: II., in: The journal OF Finance, volume. XLVI (5), 1991, P. 1575 FF.

Articles in category "Joint hypothesis"

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Related Websites

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• ACE 564 Spring 2005 Lecture 6 The Multiple Regression Model: Joint ...
  The correct approach to testing a joint hypothesis is. based on a general version of the F-test ... It may appear that joint hypothesis testing using the ...


• Frontiers of finance: Evolution and efficient markets
  hypotheses as well, and a rejection of such a joint hypothesis tells. us little about which aspect of the joint hypothesis is inconsistent. with the data. ...


• Introductory Econometrics Chapter 17: F Tests
  Chapter 17: Joint Hypothesis Testing. Chapter 16 shows how to test a hypothesis about a single slope parameter in a regression equation. ...


• st: Joint hypothesis with one-sided alternatives
  I need to test the null hypothesis that a>0 and a+b<0. I have never performed a joint hypothesis test with inequalities, but I have read that the usual Wald ...


• st: Joint hypothesis with one-sided alternatives
  I need to test the null hypothesis that a>0 and a+b<0. I have > never performed a joint hypothesis test with inequalities, but I > have read > that the ...


• st: Re: Re: Testing joint hypothesis
  I use the "constr" to construct the joint null hypothesis 2. I use the "cnsreg" command to estimate ... I use the "lrtest" command to test joint hypothesis ...