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A stock that follows the Weiner process has its future price determined by:
Suggested Answer: D
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The change in the price of a security that follows a Weiner process is determined by its standard deviation and expected return. To get the price itself, we need to add this change in price to the current price. Therefore the future price in a Weiner process is determined by all three of current price, expected return and standard deviation.
12 comments · newest first
JE
Jeniffer
11 months ago
Not sure about that, past movements matter too, right?
LI
Lino
11 months ago
Totally agree with D, can't ignore current price!
MU
Muriel
12 months ago
Wait, is it really just those? Sounds too simple.
AN
An
12 months ago
I think B is right, expected return and standard deviation are key.
BE
Beckie
12 months ago
It's definitely D, you need all three factors!
PA
Paulene
1 year ago
I thought it was just about expected return and standard deviation, so B makes sense, but I could be mixing it up with another concept.
AV
Avery
1 year ago
I feel like the answer might be D because it mentions current price too, but I can't recall if that's necessary for the Wiener process.
LI
Lizbeth
1 year ago
I remember practicing a question similar to this, and I think it was about how both return and standard deviation are important. So, B seems likely.
WA
Wade
1 year ago
I think the Wiener process involves both expected return and volatility, so maybe it's B? But I'm not entirely sure.
TA
Tamekia
1 year ago
Okay, let me re-read the question. The blank needs to be filled with a phrase that describes a simple document providing a high-level view of the organization's disaster recovery plan. I'm leaning towards A, but I'll double-check my work.
LA
Lashandra
1 year ago
Hmm, this seems like a straightforward finance question. I'll need to think through the different return metrics and which one best estimates project value.
NA
Nan
1 year ago
I'm a little confused by this question. I know we covered governance and management practices, but I'm having trouble remembering the specific types of documentation that could be used. I'll have to guess on this one and hope for the best.