Which of the Following Is Not a Characteristic of a Price

question 13

Multiple Choice

Which of the following is not a characteristic of a price process $Y _ { t }$ that follows a geometric Brownian motion (GBM) ?

• A) \(Y _ { t }\)
• Is an exponential function of a linear Ito process
• \(a t + b W _ { t }\)
• ,where
• \(\alpha\)
• And
• \(b\)
• Are constants.
• B) \(Y _ { t }\)
• Is normally distributed.
• C) \(Y _ { t }\)
• Is a continuous process,i.e. ,there are no market "gaps."
• D) \(Y _ { t }\)
• Is non-negative.

---

Definitions:

John B. Watson

An American psychologist who established the psychological school of behaviorism.

Psychological Research

The systematic investigation of scientific theories and behaviors to understand or explain psychological phenomena.

Ethical Issues

Moral challenges and concerns that arise in the practice of personal and professional conduct, affecting decisions and actions.

Animal Subjects

Non-human animals used in research to study biological, psychological, or medical processes.