Explain lognormal random walk based on Brownian motion
Explain lognormal random walk based on Brownian motion.
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This idea is proposed by Robert Brown. This idea of the random walk has permeated various scientific fields and is commonly utilized as the model mechanism behind a variety of unpredictable continuously-time processes. This Brownian motion is the classical paradigm for the stock market.
Capital formation: It is an increase in the stock of capital in particular period is termed as capital formation.
Which capital structure must we consider when estimating the WACC for a subsidiary valuation: the one which is reasonable according to the risk of the subsidiary’s business that the average of the company or the one the subsidiary as “tolerates/per
You have joined Zurich Pvt. Ltd as a Finance manager. You are given the following information: Zurich Pvt Ltd. is a diversified manufacturing firm dealing with electrical appliances. In 2012, the firm reported an operating income of Rs. 857.60 million and faced a tax rate of 35% on income. The
State when market is expected to go up then what is the Strategy of Bull Spread?
Solve for the stated annual rate, r equal to the continuously compounded rate of return implicit in turning $1 at the end of 1925 (beginning of 1926) into these reported valued from RWJ9 in 2008 Figure below: 1. Determine the state
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Our purpose this week: learning how to understand and interpret financial statements. Assignment: The class should discuss all of the questions listed below as they rel
Calculated betas give different information if they are acquired by using weekly, monthly or daily data.
Does the usual value of the sales and of the net income of Spanish companies have anything to do along with sustainable growth?
Porter’s Primary activities: 1. Inbound Logistics: • Suppliers’ details.• Storage details with respect to materials.• Details regarding pl
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