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  1. Stock Index - Geometric Brownian Motion

    We normally assumed that stocks' prices follow geometric brownian motion which is (dS_{i,t}=\mu_i S_{i,t} dt + \sigma_i S_{i,t} dW_t) note that (S_{i,t} =) price of the ith stock at time t Moreover, I see lots of papers or some textbooks assume that stock index also follows geometric...
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