How Can Random Walk Be Applied to Analysis Stock

Abstract

: This paper discuss how the model of random walk applies in analyzing the stock price. Firstly, the graph of symmetric random walk and the graph of the stock price of the company AMD are shown to observe the similarity of them directly. Secondly, we give the stock price model driven by random walk theoretically. The result of our research helps us to understand the application of random walk on analyzing the stock price by deriving the equations