Numerical Analysis and Computation Commons^™

The Reasonable Effectiveness Of Mathematics In The Natural Sciences, Nicolas Fillion

Electronic Thesis and Dissertation Repository

One of the most unsettling problems in the history of philosophy examines how mathematics can be used to adequately represent the world. An influential thesis, stated by Eugene Wigner in his paper entitled "The Unreasonable Effectiveness of Mathematics in the Natural Sciences," claims that "the miracle of the appropriateness of the language of mathematics for the formulation of the laws of physics is a wonderful gift which we neither understand nor deserve." Contrary to this view, this thesis delineates and implements a strategy to show that the applicability of mathematics is very reasonable indeed.

I distinguish three forms of the …

Approximate Methods For Dynamic Portfolio Allocation Under Transaction Costs, Nabeel Butt

Electronic Thesis and Dissertation Repository

The thesis provides robust and efficient lattice based algorithms for solving dynamic portfolio allocation problems under transaction costs. The early part of the thesis concentrates upon developing a toolbox based on multinomial trees. The multinomial trees are shown to provide a reasonable approximation for most popular transaction cost models in the academic literature. The tool, once forged, is implemented in the powerful Mathematica based parallel computing environment. In the second part of the thesis we provide applications of our framework to real world problems. We show re-balancing portfolios is more valuable in an investment environment where the growth and volatility …