chaos theory

chaos theory definition - finance
An area of mathematics that deals with non-linear dynamic systems. Although the results may seem to be random, they actually arise from a deterministic process. Chaotic systems have a fractal dimension and are highly dependent on initial conditions. Fractals are geometric structures that appear to be similar when viewed at a wide range of magnifications.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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