The first financial model to use a Markov chain was from Prasad et al. in 1974. Another was the regime-switching model of James D. Hamilton (1989), in which a Markov chain is used to model switches between periods of high volatility and low volatility of asset returns.
A molecule is a particle containing two or more atoms. If it contains only one type of atom it is called an element.
molâ¢eâ¢cule. 1. the smallest physical unit of an element or compound, consisting of one or more like atoms in an element and two or more different atoms in a compound. 2. a quantity of a substance, the weight of which is numerically equal to the molecular weight; gram molecule.