|
|
|
|
|
|
by Onavo
792 days ago
|
|
|
> Unpopular opinion backed up by experience: a randomwalk is the most effective model for generating timeseries that have the "feel" of real stock charts. That's not an unpopular opinion. The BSM model is based on the assumption that stock prices are stochastic i.e. random walks. Monte Carlo simulations and binomial trees are the two common methods of deriving a solution to the BSM model. |
|
|