• 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
 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 >>

What Happens If a Bank Fails?: How the FDIC protects depositors, including providing quick access to insured funds. More...

Instruction does much, but encouragement does everything. Johann Wolfgang Von Goethe


Copyright 2009-2018 GVC. All rights reserved.