On Quantum Ambiguity and Potential Exponential Computational Speed-Ups to Solving Dynamic Asset Pricing Models

Fuente: arXiv
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Main Authors: Ghysels, Eric, Morgan, Jack
Format: Preprint
Published: 2024
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author Ghysels, Eric
Morgan, Jack
author_facet Ghysels, Eric
Morgan, Jack
contents We formulate quantum computing solutions to a large class of dynamic nonlinear asset pricing models using algorithms, in theory exponentially more efficient than classical ones, which leverage the quantum properties of superposition and entanglement. The equilibrium asset pricing solution is a quantum state. We introduce quantum decision-theoretic foundations of ambiguity and model/parameter uncertainty to deal with model selection.
format Preprint
id arxiv_https___arxiv_org_abs_2405_01479
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle On Quantum Ambiguity and Potential Exponential Computational Speed-Ups to Solving Dynamic Asset Pricing Models
Ghysels, Eric
Morgan, Jack
Pricing of Securities
Quantum Physics
We formulate quantum computing solutions to a large class of dynamic nonlinear asset pricing models using algorithms, in theory exponentially more efficient than classical ones, which leverage the quantum properties of superposition and entanglement. The equilibrium asset pricing solution is a quantum state. We introduce quantum decision-theoretic foundations of ambiguity and model/parameter uncertainty to deal with model selection.
title On Quantum Ambiguity and Potential Exponential Computational Speed-Ups to Solving Dynamic Asset Pricing Models
topic Pricing of Securities
Quantum Physics
url https://arxiv.org/abs/2405.01479