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## Summary:

- I am interested in knowing how to connect the eigenvalues of a non harmonic Schrodinger equation with the price levels of exchange rates.

## Main Question or Discussion Point

Dear all,

Dr. Raymond S. T. Lee in his book on Quantum Finance (page 112), normalizes quantum price return QPR(n) using the following scaling:

Normalized QPR(n)=1+0.21*sigma*QPR(n).

I don't know of any way of explaining this equation.

sigma is the standard deviation of the wave function solution of a Schrodinger equation.

QPR(n)=E(n)/E(0), where E are the eigenvalues of an an-harmonic quantum oscillator (Schrodinger equation with a quadratic and a quartic term)

Thanks!

Dr. Raymond S. T. Lee in his book on Quantum Finance (page 112), normalizes quantum price return QPR(n) using the following scaling:

Normalized QPR(n)=1+0.21*sigma*QPR(n).

I don't know of any way of explaining this equation.

sigma is the standard deviation of the wave function solution of a Schrodinger equation.

QPR(n)=E(n)/E(0), where E are the eigenvalues of an an-harmonic quantum oscillator (Schrodinger equation with a quadratic and a quartic term)

Thanks!