For a random walk with drift, the best forecast of tomorrow's price is today's price plus a drift term. One could think of the drift as measuring a trend in the price (perhaps reflecting long-term ...

Let {Xk: k ≥ 1} be a sequence of independent, identically distributed random variables with $EX_{1} = \mu < 0$. Form the random walk {Sn : n ≥ 0} by setting S0 ...

Tim Smith has 20+ years of experience in the financial services industry, both as a writer and as a trader. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a ...

Let $(Y_{n}, N_{n})_{n\geq 1}$ be independent and identically distributed bivariate random variables such that the $N_{n}$ are positive with finite mean $\nu$ and the ...