Brownian motion apart once the particle is in motion. Also, there would be a distribution of different possible Δ"V"s instead of always just one in a realistic situation. The diffusion equation yields an approximation of the time evolution of the probability density function associated to the position of the particle going under a Brownian movement under the physical definition. The approximation is valid on short timescales. The time evolution of the position of the Brownian particle itself is best described using Langevin equation, an equation which involves a random force field representing the effect of the thermal fluctuations of the solvent on
Brownian model of financial markets to the Lebesgue measure. Brownian model of financial markets The Brownian motion models for financial markets are based on the work of Robert C. Merton and Paul A. Samuelson, as extensions to the one-period market models of Harold Markowitz and William F. Sharpe, and are concerned with defining the concepts of financial assets and markets, portfolios, gains and wealth in terms of continuous-time stochastic processes. Under this model, these assets have continuous prices evolving continuously in time and are driven by Brownian motion processes. This model requires an assumption of perfectly divisible assets and a frictionless market (i.e. that no