Random Walk Theory: Definition, How It’s Used, and Example
Random Walk Theory: Definition, How It’s Used, and Example
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SOLVED: Explain how a random walk without drift differs from a random walk with drift and forms a stable AR(1) process. In addition, discuss what the best predictor of yt h is when yt is a random walk process without drift and when yt is a random process with drift.
SOLVED: Explain how a random walk without drift differs from a ra…
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