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.
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.