Exploring Dynamic Asset Pricing within Bachelier Market Model
Nancy Asare Nyarko, Bhathiya Divelgama, Jagdish Gnawali, Blessing, Omotade, Svetlozar Rachev, Peter Yegon
TL;DR
This paper investigates the dynamics of asset pricing in the Bachelier market model, clarifying how risky asset prices evolve and how riskless assets are defined within this framework.
Contribution
It provides a detailed analysis of asset dynamics and riskless asset definitions specific to the Bachelier model, enhancing understanding of its theoretical structure.
Findings
Clarified the representation of risky asset price dynamics.
Defined the concept of riskless assets in the Bachelier model.
Enhanced theoretical understanding of the Bachelier market framework.
Abstract
This paper delves into the dynamics of asset pricing within Bachelier market model, elucidating the representation of risky asset price dynamics and the definition of riskless assets.
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Taxonomy
TopicsFinancial Markets and Investment Strategies · Complex Systems and Time Series Analysis · Stock Market Forecasting Methods