In this paper, we provide evidence on two alternative mechanisms of interaction between returns and volatilities: the leverage effect and the volatility feedback effect. We stress the importance of distinguishing between realized volatility and implied volatility, and find that implied...

"Why did we write this book? We wanted to help financial experts and investors to understand the state-of-the-art of artificial intelligence and machine learning in finance. And so, what is artificial intelligence? The foundations of artificial intelligence lie in the human desire to automate....