Random walk with drift

Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia

0.01 sec.

For a random walk with drift, the best forecast of tomorrow's price is today's price plus a drift term. One could think of the drift as measuring a trend in the price (perhaps reflecting long-term inflation). Given the drift is usually assumed to be constant. Related: Mean reversion.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
No references found			The [Mathematical Expression Omitted] statistics which report the percentage improvement in fit over the random walk with drift model - a special case of the DS formulation and the basic representation of the dominant stochastic cycle theory - range from . Is the endogenous business cycle dead? by Goldstein, Jonathan P. / Southern Economic Journal			Railroad Rolling Stock Insurance Railroad Sidetrack Agreement Railroad Travel Policy Rain Check Rain Forest Rain Insurance Rainmaker Rainy Day Fund Raise Raised Check Rally Ralph Nader RAM Ramadan Ramp Down Ramp Up Ramping RAN Random Access Random Access File Random Digit Dialing Random Variable Random Variance Random Walk Random Walk Theory Random walk with drift Random-Number Generation Random-Number Generator Random-Walk Hypothesis Randomization Randomized strategy range Range Forward Rangebound Rank Correlation Rank in Person Rank-and-File Ranking RAP Rappel de salaire Rappen Rapport Rapport annuel Rapport coutefficacite Ratable Ratable Value Rate Rate Anticipation Swap Rate Anticipation Swaps Rate Base Rate Book			random variable Random variables Random variables Random variables Random Variance Random Variances Random variate Random variate Random variation Random variation Random variation Random vector Random Vector Generation Random Verification Number Random vibration random voided specimen random walk random walk random walk random walk Random Walk Frequency Modulation Random walk hypothesis Random walk hypothesis Random walk hypothesis Random Walk in Random Environment Random Walk in Random Scenery Random walk theory Random walk theory Random walk theory Random walk theory Random walk with drift Random Walk--1-Dimensional Random Walk--1-Dimensional Random Walk--1-Dimensional Random Walk--2-Dimensional Random Walk--2-Dimensional Random Walk--2-Dimensional Random Walk--3-Dimensional Random Walk--3-Dimensional Random Walk--3-Dimensional Random walks Random walks Random walks Random Way Point Random Weight Random Weight Change Random White People Random Width Random Width and Length random widths random winding Random work Random work Random Zero Sphygmomanometer Random's System Information Toolm Random, Roderick Random-access Random-access Random-access Random-Access Channel random-access discrete address

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.