Illustrates example of Brownian motion
Illustrates example of Brownian motion?
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Pollen in water, smoke in a room, pollution in a river, are all illustrations of Brownian motion. And for stock prices it is the common model as well.
Explain how and why to resolve a “ranking conflict” between the internal rate of return and the net present value.
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Define the stochastic differential equation with an expression?
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Explain Girsanov’s Theorem in briefly.
How is absolute risk aversion function defined?
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