
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 nonconverging means implications.    Embedded terms in definition   Basis Finance Variance
   Referenced Terms   Deterministic models: Liabilitymatching 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


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