In this paper, we show that, similarly to the fact that distributing the investment between several independent financial instruments decreases the investment risk, using a combination of several medicines can decrease the medicines’ side effects. Moreover, the formulas for optimal combinations of medicine are the same as the formulas for the optimal portfolio, formulas first derived by the Nob...

Aggregation is a key feature of traditional risk management strategies. Financial institutions securitize assets and property insurers hold bundles of policies across many lines of business. With independent assets and risks with thin tails, the law of large numbers (LLN) and the central limit theorem (CLT) assure risk benefits from aggregation: the standard deviation of the sum increases slowe...

Time-series prediction is important in physical and financial domains. Pattern recognition techniques for time-series prediction are based on structural matching of the current state of the time-series with previously occurring states in historical data for making predictions. This paper describes a Pattern Modelling and Recognition System (PMRS) which is used for forecasting benchmark series a...

A model is constructed in which trading partners are asymmetrically informed about future trading opportunties and where spatial and informational frictions limit arbitrage between markets. These frictions create an inefficiency relative to a full information equilibrium, and the extent of this inefficiency is affected by monetary policy. Under some conditions a Friedman rule is optimal, but if...

This paper deals with a problem of guaranteed (robust) financial decision-making under model uncertainty. An efficient method is proposed for determining optimal robust portfolios of risky financial instruments in the presence of ambiguity (uncertainty) on the probabilistic model of the returns. Specifically, it is assumed that a nominal discrete return distribution is given, while the true dis...

This study aim to demonstrate the use of the accounting information systems’ impact on the quality of financial statements submitted to the Income Tax and Sales department in Jordan and the impact of such use, where Income Tax and Sales department works to collect tax money and auditing on tax payers in order to supply the state treasury with public revenues, a questionnaire consists of fourtee...

In this paper we make use of the uncovered interest rate parity (UIRP) relationship to examine the extent that the liberalization of emerging financial markets has resulted in the integration of developing countries’ currency markets into the international capital market. Previous tests of the impact of liberalization on the integration of emerging markets capital markets into world financial m...