asset price modeling

[KrazyHorse]

The wiener process is characterized (up to shift, drift and time-varying vol) by

1) being almost surely continuous
2) having normal, independent increments

If you break either of these conditions you can get all manner of distributions which do not violate any financial or mathematical precept.

[KrazyHorse]

BTW, nothing in the EMH says that returns need to be independent. The restriction it provides is much weaker than that.

[DaShi]

"I think about incredibly boring dull **** and I love it!" thread. You know full well no one here but KH would be able to help you.

Dull and loving it!

[Cort Haus]

Uh-huh!

He said 'weener'.

[Aeson]

Beevis and Butthead turn this no star thread into a 5 STAR THREAD!

[Aeson]

Everything that could be said about this thread has already been said... a moment of silence please...