Advertising

Stochastic

• Is a condition in finance or economics whereby changes occur on a more abrupt basis than those expected to be normally encountered. In some ways stochastic has infinite variance and/or non-converging means implications.

 
 Embedded terms in definition
 Basis
Finance
Variance
 
 Referenced Terms
 Deterministic models: Liability-matching models that assume that the liability payments and the asset cash flows are known with certainty. Related: Compare Stochastic models

 Wiener process: Is a type of Markov Stochastic process. It refers to changes in value over small time periods. Sometimes, this process is also called Brownian motion.

 
 Related Terms
 Stochastic models

<< Sterilized intervention Stochastic models >>

Ways to Cope Financially During and After a Big Change: Here are suggestions for staying focused and avoiding costly decisions during changing times. More...

Everyone has inside of him a piece of good news. The good news is that you don't know how great you can be! How much you can love! What you can accomplish! And what your potential is! Anne Frank

Advertising



Copyright 2009-2018 GVC. All rights reserved.