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# Geometric Brownian Motion
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Geometric Brownian Motion is a stochastic, non-linear process to model asset price. As a rule of thumb , there is an [academic paper](https://www.researchgate.net/publication/325987061_Forecasting_Share_Prices_of_Small_Size_Companies_in_Bursa_Malaysia_Using_Geometric_Brownian_Motion) that stated that GBM works best for forecasting when limited to max 2 week lookahead.
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The equations is as follows:
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$$ \LARGE {dS \over S} = \mu dt + \sigma dW $$
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- $dS$ - Change in asset price over time interval

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