Question
A company's cash position (measured in millions of dollars) follows a generalized Wiener process falling on average $0.2m per quarter with volatility of $1.3m per
A company's cash position (measured in millions of dollars) follows a generalized Wiener process falling on average $0.2m per quarter with volatility of $1.3m per quarter. How high must the initial cash balance be for the probability of a negative balance after 1.75 years not to exceed 5%?
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The Wiener process also known as the Brownian motion is a concept in mathematics and physics that re...
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
