Neural networks are a relatively young developmental area. They imitate the principles of the biological brain and can therefore be variously applied in different fields. Neural networks have a characteristic of learning. They solve problems in a similar way as the biological brain. Neural...

Numerous empirical studies have shown evidence of nonlinearities in financial time series, which can be of both a deterministic and a stochastic nature. Chaos is an example of the former, and heteroscedasticity in the conditional variance an example of the latter. We apply a test, the BDS test,...