Up until now, the management of the financial crisis has been placed, primarily, in the hands of those who allowed the crisis to happen. Investors and financial institutions have received government support at tax payers’ expense while the needs and interests of other victims of the crisis...

This dissertation consists of two parts. The first part introduces a neural network approach that is used to forecast the conditional probability density function of asset returns. The model is unified with the idea of Arbitrage Pricing Theory (APT). In the second part, an algorithm called...