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Risk Latte - Brownian Motion
Quiz on Brownian Motion
Team Latte
Jan 10, 2006

Quiz # 1

1) Brownian motion is:

a) Markovian;
b) Non-Markovian;
c) Markovian under special cases;
d) None of the above;

2) Brownian motion is a:

a) Weiner process;
b) Not a Wiener process;
c) A Wiener process under special cases;
d) Levy process;

3) Brownian motion is:

a) Random Walk
b) Random walk plus drift;
c) Random walk minus drift;
d) Not a Random walk;

4) Stock prices are supposed to follow:

a) Random walk;
b) Brownian motion;
c) Both the above;
d) None of the above;

5) Brownian motion can be:

a) arithmetic in nature;
b) geometric in nature;
c) exponential in nature;
d) both (a) and (b);

6) In a Brownian motion a particle position is given by:

a) Gaussian distribution;
b) Poisson distribution;
c) Beta distribution;
d) Binomial distribution;

7) Brownian motion was discovered by:
a) Albert Einstein;
b) Louis Bachelier;
c) Fischer Black;
d) None of the above;

8) Brownian motion:

a) Can easily be modeled on an Excel? spreadsheet;
b) cannot be easily modeled on an Excel? spreadsheet;
c) cannot be modeled at all on an Excel? spreadsheet;
d) can only be modeled as a special case of random walk;

9) Which of the following equations represent the Brownian motion:
a)
b)
c)
d)

10) The concept of Brownian motion was first explained in detail in context of:

a) Physics;
b) Chemistry;
c) Botany;
d) Finance;

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