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Brownian Motion Quiz
Team Latte
Jan 01, 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) Wiener 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 of 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 arithmetic and geometric in nature;

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 is 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 TM spreadsheet;
b) Cannot be easily modeled on an Excel TM spreadsheet;
c) Cannot be modeled at all on an Excel TM spreadsheet;
d) Can only be modeled as a special case of random walk;

9) 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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