Prospect and Markowitz Stochastic Dominance

Levy and Levy (2002, 2004) develop the Prospect and Markowitz stochastic dominance theory with S-shaped and reverse S-shaped utility functions for investors. In this paper, we extend Levy and Levy's Prospect Stochastic Dominance theory (PSD) and Markowitz Stochastic Dominance theory (MSD) to the first three orders and link the corresponding S-shaped and reverse S-shaped utility functions to the first three orders. We also provide experiments to illustrate each case of the MSD and PSD to the first three orders and demonstrate that the higher order MSD and PSD cannot be replaced by the lower order MSD and PSD. Prospect theory has been regarded as a challenge to the expected utility paradigm. Levy and Levy (2002) prove that the second order PSD and MSD satisfy the expected utility paradigm. In our paper we take Levy and Levy's results one step further by showing that both PSD and MSD of any order are consistent with the expected utility paradigm. Furthermore, we formulate some other properties for the PSD and MSD including the hierarchy that exists in both PSD and MSD relationships; arbitrage opportunities that exist in the first orders of both PSD and MSD; and that for any two prospects under certain conditions, their third order MSD preference will be ???the opposite??? of or ???the same??? as their counterpart third order PSD preference. By extending Levy and Levy's work, we provide investors with more tools for empirical analysis, with which they can identify the first order PSD and MSD prospects and discern arbitrage opportunities that could increase his/her utility as well as wealth and set up a zero dollar portfolio to make huge profit. Our tools also enable investors to identify the third order PSD and MSD prospects and make better choices.Prospect stochastic dominance, Markowitz stochastic dominance, risk seeking, risk averse, S-shaped utility function, reverse S-shaped utility function

On the Estimation of Cost of Capital and its Reliability

Gordon and Shapiro (1956) first equated the price of a share with the present value of future dividends and derived the well-known relationship. Since then, there have been many improvements on the theory. For example, Thompson (1985, 1987) combined the "dividend yield plus growth" method with Box-Jenkins time series analysis of past dividend experience to estimate the cost of capital and its "reliability" for individual firms. Thompson and Wong (1991, 1996) proved the existence and uniqueness of the cost of capital and provided formula to estimate both the cost of capital and its reliability. However, their approaches cannot be used if the "reliability" does not exist or if there are multiple solutions for the "reliability". In this paper, we extend their theory by proving the existence and uniqueness of this reliability. In addition, we propose the estimators for the reliability and prove that the estimators converge to a true parameter. The estimation approach is further simplified, hence rendering computation easier. In addition, the properties of the cost of capital and its reliability will be analyzed with illustrations of several commonly used Box-Jenkins models.

New and emerging therapeutic options for malignant pleural mesothelioma: review of early clinical trials.

Malignant pleural mesothelioma (MPM) is a rare tumor that is challenging to control. Despite some benefit from using the multimodality-approach (surgery, combination chemotherapy and radiation), survival remains poor. However, current research produced a list of potential therapies. Here, we summarize significant new preclinical and early clinical developments in treatment of MPM, which include mesothelin specific antibody and toxin therapies, interleukin-4 (IL-4) receptor toxins, dendritic cell vaccines, immune checkpoint inhibitors, and gene-based therapies. In addition, several local modalities such as photodynamic therapy, postoperative lavage using betadine, and cryotherapy for local recurrence, have also shown to be effective for local control of disease

BitTorrent Traffic Detection with Deep Packet Inspection and Deep Flow Inspection

The peer-to-peer (P2P) technology has been well developed with the internet networking and BitTorrent (BT) is one of the very popular P2P sharing protocols widely used. BT network traffic detection has become very challenging in recent years due to smarter peer-to-peer applications. During my CS297 project, a new improved detection method based on Deep Packet Inspection (DPI) and Deep Flow Inspection (DFI) was proposed for detecting BT packets. The preliminary experiments show promising results in terms of detection rate. In my CS298 project, the proposed method is implemented in C and Matlab. In addition, the detection rate and performance of the proposed method was also compared with other existing methods. The major results have been submitted to a conference for a paper

Multi-channel Wireless Networks with Infrastructure Support: Capacity and Delay

In this paper, we propose a novel multi-channel network with infrastructure support, called an \textit{MC-IS} network, which has not been studied in the literature. To the best of our knowledge, we are the first to study such an \textit{MC-IS} network. Our \textit{MC-IS} network is equipped with a number of infrastructure nodes which can communicate with common nodes using a number of channels where a communication between a common node and an infrastructure node is called an infrastructure communication and a communication between two common nodes is called an ad-hoc communication. Our proposed \textit{MC-IS} network has a number of advantages over three existing conventional networks, namely a single-channel wireless ad hoc network (called an \textit{SC-AH} network), a multi-channel wireless ad hoc network (called an \textit{MC-AH} network) and a single-channel network with infrastructure support (called an \textit{SC-IS} network). In particular, the \textit{network capacity} of our proposed \textit{MC-IS} network is $\sqrt{n \log n}$ times higher than that of an \textit{SC-AH} network and an \textit{MC-AH} network and the same as that of an \textit{SC-IS} network, where $n$ is the number of nodes in the network. The \textit{average delay} of our \textit{MC-IS} network is $\sqrt{\log n/n}$ times lower than that of an \textit{SC-AH} network and an \textit{MC-AH} network, and $\min(C_I,m)$ times lower than the average delay of an \textit{SC-IS} network, where $C_I$ and $m$ denote the number of channels dedicated for infrastructure communications and the number of interfaces mounted at each infrastructure node, respectively.Comment: 12 pages, 6 figures, 3 table

On Capacity and Delay of Multi-channel Wireless Networks with Infrastructure Support

In this paper, we propose a novel multi-channel network with infrastructure support, called an MC-IS network, which has not been studied in the literature. To the best of our knowledge, we are the first to study such an MC-IS network. Our proposed MC-IS network has a number of advantages over three existing conventional networks, namely a single-channel wireless ad hoc network (called an SC-AH network), a multi-channel wireless ad hoc network (called an MC-AH network) and a single-channel network with infrastructure support (called an SC-IS network). In particular, the network capacity of our proposed MC-IS network is $\sqrt{n \log n}$ times higher than that of an SC-AH network and an MC-AH network and the same as that of an SC-IS network, where $n$ is the number of nodes in the network. The average delay of our MC-IS network is $\sqrt{\log n/n}$ times lower than that of an SC-AH network and an MC-AH network, and $\min\{C_I,m\}$ times lower than the average delay of an SC-IS network, where $C_I$ and $m$ denote the number of channels dedicated for infrastructure communications and the number of interfaces mounted at each infrastructure node, respectively. Our analysis on an MC-IS network equipped with omni-directional antennas only has been extended to an MC-IS network equipped with directional antennas only, which are named as an MC-IS-DA network. We show that an MC-IS-DA network has an even lower delay of $\frac{c}{\lfloor \frac{2\pi}{\theta}\rfloor \cdot C_I}$ compared with an SC-IS network and our MC-IS network. For example, when $C_I=12$ and $\theta=\frac{\pi}{12}$, an MC-IS-DA network can further reduce the delay by 24 times lower that of an MC-IS network and reduce the delay by 288 times lower than that of an SC-IS network.Comment: accepted, IEEE Transactions on Vehicular Technology, 201