We are interested in the analysis of the concept of interpretability associated with a ML algorithm. We distinguish between the “How”, i.e., how a black box or a very complex algorithm works, and the “Why”, i.e. why an algorithm produces such a result. These questions appeal to many...

Artificial intelligence (“Al") is a comprehensive field of computer science that enables machines to learn from experience and ultimately take difficult actions without human intervention. Al has been one of the highly populartopics overthe last decade, as it has become a more effective tool...

This paper adopts Wavelet transform and Support Vector Regression (SVR) algorithm to predict all stock returns and form a time-varying Machine Learning (ML) factor added in CH4 of Liu, Stambaugh, et al. (2019) in the Chinese stock market from 2000 to 2020. The result shows that the decile sorted...