Multi-layer perceptions can be dealt with pseudo-random numbers which are explained by beta minus expansivity and multiplicative linear congruent generators. The non-linear in data will require a hypothesis either of volatility feedback or leverage hypothesis when used for financial analysis. Volatility feedback essentially would mean the delta hedge is working and the market has a fine structure constant. The dimensions being added at edge we have embedding dimensions with n histories. As the investors attitude towards risk and expected returns are non-linear there is a distinction between non-linearity in mean and in variance as it is a multiple moment analysis.
Tuesday, 17 September 2013
The empirical relevance of imperfect risk sharing for asset pricing requires separation of Risk Aversion and Inter-temporal Substitution. The elasticity of the inter temporal substitution could be taken as reciprocal of the co-efficient of relative risk aversion given by gamma which has a close connection to market catastrophe. The stochastic discount factor is the inter temporal marginal rate of substitution. i.e. the discounted ratio of marginal utility in two successive periods. In the psychological models of decision making people make choices that differ in several respects from expected utility theory. In a static context it can be prospects where instead of preferences over consumption there are gains or losses relative to a benchmark outcome, with losses given greater weight. Gamma 's become curvature parameters and lambda,( from market wave) measures loss aversion.
Sunday, 15 September 2013
The mind has thoughts and no other object except ideas. In its memory what it knows is in the past yet the act of knowing is in the present. This is what philosophers say that there is an act of knowing and the object which is known. Perception and conception. Knowledge is then the awareness of the idea and perception of the inter-relationships between ideas. With a logical syntax we arrive at the notion that matter is a series of events or strings and these events can be collected and bundled. Quantum logic would treat physical phenomenon as discontinuous, hence, perception is an effect of the object perceived. Knowledge of the physical world is an abstract properties of structure, thus, images which form a loop. A non-perceived material object can be a conception as an image, the difference arising from being perceived and consciously perceived being of degree from loop theta.
Friday, 13 September 2013
With alteration in capital asset prices, the gains in each year of the expected life of an investment project requires a readjustment of the return rates and discount rates. The internal rate of return could make the stream of discounted net benefits equal to the initial capital cost. The projects with high net present value may not record high internal rate of return with adjusted market data while deriving an estimate of the social surplus associated with the project in determining net worth. It is the social rate of discount and the cost of capital which decides the allocation of resources between the public and private sector. The social time preference rate is to lead to the emergence of the modern state, from the spallated hypothetical global state and the time required for restoration of the third state which is the proposition put forward in Legum Baccalaureus ( New Age Books) when the issue of uncertainty is dealt with. Neutrality, Political Robustness and compatibility appear as major considerations in collective decision making.