The General Model of the Financial Prices Dynamics
This paper concerns the analysis of financial time series by dynamic models emerging from the theory of stochastic processes. The importance of this topic can be supported by several arguments: - the most successful applications of dynamic models in the analysis of economic time series are the applications conducted for financial time series, - the dynamic models are the best models for financial time series, - the theory of continuous stochastic processes developed in finance by Robert Merton (see e.g. (Merton (1990)) was the driving force for the development of theoretical finance in the last thirty years.(fragment of text)
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