This simple question does not have a simple answer. The boundary of such an interdisciplinary area is always moot and any attempt to give a formal definition is unlikely to be successful. Broadly speaking, financial econometrics is to study quantitative problems arising from finance. It uses statistical techniques and economic theory to address a variety of problems from finance. These include building financial models, estimation and inferences of financial models, volatility estimation, risk management, testing financial economics theory, capital asset pricing, derivative pricing, portfolio allocation, risk-adjusted returns, simulating financial systems, hedging strategies, among others. Technological invention and trade globalization have brought us into a new era of financial markets. Over the last three decades, enormous number of new financial products have been created to meet customers demands. For example, to reduce the impact of the fluctuations of currency exchange rates on a firms finance, which makes its profit more predictable and competitive, a multinational corporation may decide to buy the options on the future of foreign exchanges; to reduce the risk of price fluctuations of a commodity (eg lumbers, corns, soybeans), a farmer may enter into the future contracts of the commodity; to reduce the risk of weather exposures, amuse parks (too hot or too cold reduces the number of visitors) and energy companies may decide to purchase the financial derivatives based on the temperature. An important milestone is that in the year 1973, the worlds first options exchange opened in Chicago. At the very same year, Black and Scholes (1973

Fractional quantum Hall (FQH) system at Landau level filling fraction $\nu=5/2$ has long been suggested to be non-Abelian, either Pfaffian (Pf) or antiPfaffian (APf) states by numerical studies, both with quantized Hall conductance $\sigma_{xy}=5e^2/2h$. Thermal Hall conductances of the Pf and APf states are quantized at $\kappa_{xy}=7/2$ and $\kappa_{xy}=3/2$ respectively in a proper unit. However, a recent experiment shows the thermal Hall conductance of $\nu=5/2$ FQH state is $\kappa_{xy}=5/2$. It has been speculated that the system contains random Pf and APf domains driven by disorders, and the neutral chiral Majorana modes on the domain walls may undergo a percolation transition to a $\kappa_{xy}=5/2$ phase. In this work, we do perturbative and non-perturbative analyses on the domain walls between Pf and APf. We show the domain wall theory possesses an emergent SO(4) symmetry at energy scales below a threshold $\Lambda_1$, which is lowered to an emergent U(1)$\times$U(1) symmetry at energy scales between $\Lambda_1$ and a higher value $\Lambda_2$, and is finally lowered to the composite fermion parity symmetry $\mathbb{Z}_2^F$ above $\Lambda_2$. Based on the emergent symmetries, we propose a specific phase diagram of the disordered $\nu=5/2$ FQH system, and show that a $\kappa_{xy}=5/2$ phase arises at disorder energy scales $\Lambda>\Lambda_1$. Furthermore, we show the gapped double-semion sector of $N_D$ closed domain walls contributes non-local topological degeneracy $2^{N_D-1}$, causing a low temperature peak in the heat capacity. We also implement a non-perturbative method to bootstrap generic topological 1+1D domain walls (2-surface defects) applicable to any 2+1D non-Abelian topological order.

The purpose of this paper is to demonstrate in a rather general setup how isoperimetric inequalities and lower bounds of the eigenvalues of the Laplacian can be derived from existence of a distance function with controllable

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