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2. Stock A, SA, and Stock B ,SB, both follow geometric Brownian motion. Changes in any short interval of time are uncorrelated with each other.

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2. Stock A, SA, and Stock B ,SB, both follow geometric Brownian motion. Changes in any short interval of time are uncorrelated with each other. (a) Show the stochastic process of S and SB using discrete-time model. (b) Does the value of a portfolio consisting of one of stock A and one of stock B follow geometric Brownian motion

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