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Statistically consistent term structures have affine geometry
From a practical perspective, this requires that the chosen set of possible yield curves is compatible with any obtained diffusion coefficient.
Weighted Laplacian and Its Theoretical Applications
In this paper, we develop a novel weighted Laplacian method, which is partially inspired by the theory of graph Laplacian, to study recent popular graph problems, such as multilevel graph partitioning and balanced minimum cut problem, in a more convenient manner.
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