Quant, Finance, Stock Market, Data Science, Volatility.
Random Path with Mean 0 and Variance 1 If we plot this model in R, Let’s say with mean 0 and variance 1 with an initial value of 100. and also making t very small let’s say 1000 small time steps than it’ll look like below. Random path with 1000 steps Geometric Brownian Motion: If we look at return