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Indeed it is true, except for very short periods of time where it begins to break down. In quantitative finance one can model the market or an individual stock
by mediaman 17y ago
Indeed it is true, except for very short periods of time where it begins to break down. In quantitative finance one can model the market or an individual stock as a Brownian motion with a long term upwards drift. The results look startlingly similar to what we're used to seeing on actual stock charts.