Classic studies of the probability density of price fluctuations $g$ for stocks and foreign exchanges of several highly developed economies have been interpreted using a {\it power-law} probability density function $P(g) \sim g^{-(\alpha+1)}$ with exponent values $\alpha 2$, which are outside...

Classic studies of the probability density of price fluctuations g for stocks and foreign exchanges of several highly developed economies have been interpreted using a power-law probability density function P(g) g−(α+1) with exponent values α 2, which are outside the L´evy-stable regime 0 ...

Divergence is an understudied subject loosely defined as an unpredictable random error. The classification of divergences as small or large is also at the heart of efficient or inefficient market theory debate. This paper explains how divergence is cyclical and can be quantified and used as a...

Tim Berners Lee's vision of the Semantic Web (Web 3.0) as defined in his 2001 paper with Hendler and Lassila though accurate is incomplete. The evolution of the web is not going to stop at its cognitive stage but will move towards becoming an ultra-smart agent and for that to happen the web...

The two Nobel Prizes awarded in Economics in 1990 and 2013 define the boundaries of Modern Portfolio Theory (MPT). Size is the pillar for both the models. The 1990 winners assumed market to be driven by Market Capitalization (MCAP) size, while the 2013 winner explained that factors like ‘Small...

The Black Swan (BS) was brought to popular attention in the book by Nassim Taleb. BS was an outlier, had an extreme impact, was open to causal explanation after it appeared and was hard to predict. BS explained how the idea of normality had to be rejected and the idea of power law had to be...

The financial markets are not only changing internally but also externally as blockchain starts to change the infrastructure landscape. The falling fees for investment management is creating a more accountable financial industry and forcing the stock market to also question its broader role in...

While Robert Solow suggested not to think of Economics as Science, Andrew Lo warned us about the dangers of using Physics to build economic systems. Physics has been a late entrant to the world of Finance. The subject has reached critical mass to answer some of the biggest challenges of Finance...

Adaptive Market Hypothesis (AMH) embraces Efficient Market Hypothesis (EMH) as an idealization that is economically unrealizable, but which serves as a useful benchmark for measuring relative efficiency. AMH's adaptability to changing dynamics of the market suggests that investors are...

John Rae's inter-temporal choices explained the statistical nature of human behavior in 1834. However, despite the subject's insight in the objectiveness of behavior, inter-temporal choices remains a peripheral science. This paper takes a sequential approach to question how inter-temporal...