3.1 Modelling price processes

This paper covers:

·        The efficient market hypothesis

·        Price processes based on Brownian motions

·        A normally evolving random process

·        Wiener and Itô processes

·        A log-normally distributed price process

·        Expectation of a geometric Brownian motion

·        A normally distributed returns process

·        Volatility

·        Analysing historic time series

·        Mean-reverting price processes

·        Measures and measure changes

·        Changing the drift of a process

The paper has 31 pages and the Excel has 8 sheets