Efficient Market Hypothesis - EMH'

An investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information. According to the EMH, stocks always trade at their fair value on stock exchanges, making it impossible for investors to either purchase undervalued stocks or sell stocks for inflated prices. As such, it should be impossible to outperform the overall market through expert stock selection or market timing, and that the only way an investor can possibly obtain higher returns is by purchasing riskier investments. Read more: http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp#ixzz1ymBwiTw3

What Is a Statistical Hypothesis?

"A hypothesis is a statement of a relationship between two or more variables." A statistical hypothesis is simply a particular kind of hypothesis.A statistical hypothesis is either (1) a statement about the value of a population parameter (e.g., mean, median, mode, variance, standard deviation, proportion, total), or (2) a statement about the kind of probability distribution that a certain variable obeys.