Description: This paper is about a concept known as the 'rate of transmission of information' or, more simply, as the 'information rate.' The authors establish the equivalence of arbitrage-free economic systems and a generalized betting model in such a way that the interpretation of the information rate, as the maximum rate of increase of an investor's capital, is preserved. As a corollary to this result, they show that the difference in the information rate between models represents the achievable incremental return associated with the superior predictor model. From Actuarial Research Clearing House 1993, Vol. 3.

Description: Hybrids of the soft computing SC technologies have been applied to market forecasting and trading rules, and in many cases have demonstrated better performance than competing approaches. The purpose of this research is to investigate a representative group of these applications and to document the manner in which hybrids of the SC technologies were implemented.