Quant, Finance, Stock Market, Data Science, Volatility.
value for µ and σ based on historical data of prices. Now, we can set a model for this where we have two parts. One is Drift and the Second is Diffusion. Drift = µSt Diffusion = σSt The simulated result in R will look as follow. Where µ = 0.05, σ = 0.20, S=100. GBM This is how Brownian motion and