Fractal market hypothesis and two power-laws

A fractal approach is used to analyze financial time series by applying different degrees of time resolutions. This leads to the heterogenous market hypothesis (HMH), where different market participants analyze past events and news with different time horizons. A new general model for asset returns is studied in the framework of the fractal market hypothesis (FMH). It concerns capital market systems in which the conditionally exponential dependence (CED) property can be attached to each investor on the market.