Standard Brownian Motion

Tags: #Financial #Economics

Equation

$$Z(t) \sim N(0, t) \\ Z(t+s) - Z(t) \sim N(0, s) \\ Z(t+s) \sim N(Z(t), s)$$

Latex Code

                                 Z(t) \sim N(0, t) \\
Z(t+s) - Z(t) \sim N(0, s) \\
Z(t+s) \sim N(Z(t), s)
                            

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Introduction

Equation



Latex Code

            Z(t) \sim N(0, t) \\
            Z(t+s) - Z(t) \sim N(0, s) \\
            Z(t+s) \sim N(Z(t), s)
        

Explanation

Latex code for the Standard Brownian Motion. I will briefly introduce the notations in this formulation. {Z(t)} has independent increments, and {Z(t)} has stationary increments such that Z (t + s) ? Z (t) follows standard normal distribution

  • : Value of Z at time stamp t
  • : Stationary increments of Standard Brownian Motion

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