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.
What is the importance and the utility of the given formula: Ke = DIV(1+g)/P + g?
Financial Analysis: It is the investigation and interpretation of financial statements and associated financial reports. Trained and certified accountants generally complete this kind of analysis. The role of a financial analyst is to
which type of tax, direct or indirect is applicable in underdeveloped countries? Why? Show your critical areas and weaknesses.
We are valuing a company, many smaller than ours, so as to buy it. As that company is too smaller than ours this will have no influence on the capital structure and at the risk of the resulting company. It is the reason why I believe this the beta and the capital stru
I think Free Cash Flow (FCF) can be acquired from the Equity Cash Flow (CFac) using the relation as: FCF = CFac + Interests – ΔD. Is it true?
When you take out an $8,000 car loan that calls for 48 monthly payments of $225 each, then what is the APR of loan?
Assume that the risk-free rate is 1% and the expected market return is 9%. You are considering purchasing Super Soft stock, which currently sells for $100 a share and will pay its next (annual) dividend of $1.00 exactly one year from today. Super Soft is considered to
WCR fend off takeover bid: The WCR estimation ensures that a firm takes corrective action in time to correct its WC status. This ensures that the firm is always in a positive WC status. In other words, the firm will be able to pay off all its short-te
The often known as "cash flow" that is net income plus depreciation, is a flow of cash, but is this a flow to the company or to the shareholders?
Does it make any sense to compute betas against local indexes while a company has a great part of its operations outside such local market? I have two illustrations: BBVA and Santander.
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