Quantum Capital Asset Pricing:Asset Pricing Based on entanglement and energy level transition
Abstract
Abstract:Markowitz's portfolio theory is the cornerstone of modern financial theory.It constructs a risk return linear correlation system based on the assumption of asset independence and the mean variance analysis framework,but it has significant limitations in explaining the practical problems of the financial market.Based on the entanglement state and energy level transition principle of quantum mechanics,this paper proposes a quantum capital asset pricing model,subverts the core assumptions of traditional theories,and demonstrates that there is a quantum entanglement relationship between assets,and the relationship between risk and return is determined by the entanglement strength of assets.In this paper,we construct a quantum entanglement entropy model to quantify the entanglement correlation degree of assets,and extend the quantum capital asset pricing model(q-capm),which includes entanglement entropy into the asset pricing framework to explain the source of excess returns,and analyze the mechanism of the formation and rupture of financial bubbles based on the dynamic evolution mechanism of entanglement entropy.The research shows that the core of portfolio is to control the entanglement entropy level between assets,and portfolio with high entanglement entropy can realize risk hedging and return transition through quantum entanglement effect,breaking through the theoretical boundary of mean variance model.This paper provides a new theoretical perspective and…
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