Lecture Notes for ORIE 473:

Empirical Methods in Financial

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8

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50

0
0.02

45
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40

50

100

150

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0.06

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50

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0.06

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0.90

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0.02
0
0.02
0.04
0.06

50

100

150

200

250

50

100

150

200

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0.75
0.50
0.25
0.10
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150

200

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Geometric Random Walk

65

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75

60

70
65

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60
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50

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100

150

200

45

250

Geometric Random Walk

50

100

150

200

250

GE, daily 12/17/99 to 12/15/00

55

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2.5

Price

Log Price

Random Walk

400

800

1000

200

Random Walk

400

600

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1000

Geometric Random Walk

2.5

12
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Log Price

8
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