AuthorTopic: andom walk with drift
GustavoV
@2020-03-26 18:57:57
In quants, we speak about random walk with drift and that if we have a drift, b0 is different than 0, but what exactly is the drift supposed to mean?
psmaniyar
@2020-03-31 01:40:40
It means that b0 <> 0.

Literally, that's the definition of drift.

Tomorrow's value is expected to be larger than today's.

Or, tomorrow's value is expected to be smaller than today's.

CFA Discussion Topic: andom walk with drift

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