Quiz Ch 20 – Variance of Cumulative Price Change in Random Walk

Principles of Corporate Finance

Brealey, Myers, and Allen

13th Edition

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How is the cumulative price change variance calculated for the stock following a random walk with variance σ² over t days until expiration?

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  • Search Terms: a) (t). (t). c) (σ) (σ)/t. d) a and are change change, changes cumulative daily days expiration, follows if independent. is is of price random statistically stock successive t the there until variance walk, × σ σ b)
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