3 ms·
>"If you think of the market as a "random walk" (a well defined mathematical concept)" Random walk with a drift is how the trend is described.
by onebaddude 13y ago
>"If you think of the market as a "random walk" (a well defined mathematical concept)"
Random walk with a drift is how the trend is described.
- tiatia 13y agoGreat. If you know a little tiny bit about finance then you know that stock prices are not a random walk (with drift or without). A random walk would give you a standard distribution. In reality you are dealing with a fat tail distribution.