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.
comÂ·pound. Noun. Chemistry A substance made up of two or more elements joined by chemical bonds into a molecule. The elements are combined in a definite ratio. Water, for example, is a compound having two hydrogen atoms and one oxygen atom in each molecule.Adjective. Composed of more than one part, as a compound eye or leaf.omÂ·pound. Noun. Chemistry A substance made up of two or more elements joined by chemical bonds into a molecule. The elements are combined in a definite ratio. Water, for example, is a compound having two hydrogen atoms and one oxygen atom in each molecule.