Martingales, Efficient Market Hypothesis and Kolmogorov’s Complexity Theory

Abstract

Efficient market theory states that financial markets can process information instantly. Empirical observations have challenged the stricter form of the efficient market hypothesis (EMH). These empirical observations and theoretical considerations show that price changes are difficult to predict if one starts from the time series of price changes. This paper provides an explanation in terms of algorithmic complexity theory of Kolmogorov that makes a clearer connection between the efficient market hypothesis and the unpredictable character of stock returns.

Computer Aided Design of Solvent Blends for Hybrid Cooling and Antisolvent Crystallization of Active Pharmaceutical Ingredients

“…Ibuprofen is a nonsteroidal anti-inflammatory drug (NSAID), widely used around the world to manage pain. Whilst the crystallization of this API has already been thoroughly researched in both academia ,, and industry, − with global production estimated to be greater than 35,000 tonnes per annum, ibuprofen remains an interesting compound to study in the general crystallization solvent design problem. It is well documented that ibuprofen crystallizes by forming dimers around the carboxylic acid functional groups due to hydrogen bonding (Figure ); the presence of dimers in solution can be modeled with the SAFT-γ Mie group-contribution approach via the introduction of association sites on the carboxyl functional group, accurately predicting the solubility of ibuprofen in organic solvents.…”