Chaos Theory in Financial Modeling: A Pure Science Perspective

Authors

  • Ghulam Murtaza University of Agriculture, Faisalabad, Pakistan
  • Hassan Abbas HEC Distinguished National Professor, Islamabad, Pakistan

Keywords:

Chaos Theory, Financial Modeling, Nonlinear Dynamics, Market Volatility, Risk Management, Fractal Geometry, Pure Science, Predictive Modeling, Systemic Risk

Abstract

This article delves into the application of Chaos Theory in financial modeling, shedding light on its relevance and potential benefits from a pure science perspective. Chaos Theory, originally developed in the field of mathematics, has found practical applications in various disciplines, including finance. The paper explores how chaos theory can enhance financial models, providing a fresh perspective on market dynamics and risk management. Through a comprehensive analysis, this article emphasizes the importance of embracing the inherent chaos in financial markets for more accurate predictions and decision-making.

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Published

2023-06-30

Issue

Section

Articles