README.md

Stocks

Example output for Apple Inc.

Stocks

Module for retrieving and processing stock data used in other projects such as:

• Option-Pricing
• Brinson-Fachler return attribution

Brownian Motion

Geometric Brownian Motion (GMB) is used to simulate possible future paths of a stock. With a current stock price $S_0$, a drift rate $\mu$ (historic average return), a volatility $\sigma$ (realized volatility) and a time horizon $T$ it is possible to simulate numerous stock paths which can then be used to gain insights into risk and return of a stock (which for example can be used in pricing stock options).