Monotonicity of Quantum Relative Entropy

Author

Dai, Xianhua

Author_Institution

Sch. of Law & Bus., Wuhan Inst. of Technol., Wuhan, China

fYear

2010

fDate

24-26 Aug. 2010

Firstpage

1

Lastpage

3

Abstract

Quantum finance is freshly developing, for example, to model interest rates and price options, see, for example. In order to explore quantum portfolio and analyze its risk, this work will develop quantum relative entropy in theory of information for quantitative analysis in banks and finance firms, and for practitioners for fixed income securities and foreign exchange in decision making. One quantum relative entropy is introduced without Radon-Nikodym derivative, therefore much simpler to compute than Araki-Umegaki type, Belavkin-Staszewski type, and Hammersley-Belavkin type, in particular, its monotonicity is obtained.

Keywords

econophysics; entropy; quantum theory; Araki-Umegaki type; Belavkin-Staszewski type; Hammersley-Belavkin type; Radon-Nikodym derivative; finance firms; fixed income securities; foreign exchange; information theory; interest rates; price options; quantitative analysis; quantum finance; quantum portfolio; quantum relative entropy; Algebra; Decision making; Entropy; Finance; Quantum computing; Relativistic quantum mechanics;

fLanguage

English

Publisher

ieee

Conference_Titel

Management and Service Science (MASS), 2010 International Conference on

Conference_Location

Wuhan

Print_ISBN

978-1-4244-5325-2

Electronic_ISBN

978-1-4244-5326-9

Type

conf

DOI

10.1109/ICMSS.2010.5578479

Filename

5578479