Conditional entropy distribution of Istanbul stock market value

Abstract

In this study, the conditional distributions of Istanbul stock market value are obtained by using entropy optimization. The aim is to observe how the fluctuation of the conditional distributions changes according to different correlation values between the value of the firm and its stock price fluctuation. The entropy optimization problem, which is taken into account, is bivariate, so a geometric programming approach is used to convert it to a univariate problem.

Acknowledgements

The author thanks Prof. Dr. Aladdin Shamilov (Anadolu University, Turkey) for his kind help and the referees for their valuable comments and suggestions which led to a great improvement of the results and the presentation of the article.