Geometric Brownian motion Geometric Brownian motion A geometric Brownian motion (GBM) (also known as exponential Brownian motion) is a continuous-time stochastic process in which the logarithm of the randomly varying quantity follows a Brownian motion (also called a Wiener process) with drift. It is an important example of stochastic processes satisfying a stochastic differential equation (SDE); in particular, it is used in mathematical finance to model stock prices in the Black–Scholes model. A stochastic process "S" is said to follow a GBM if it satisfies the following stochastic differential equation (SDE): where formula_2 is a Wiener process or Brownian motion, and formula_3 ('the
Rotational Brownian motion imposed electric field. Rotational Brownian motion was first discussed by Peter Debye, who applied Einstein's theory of translational Brownian motion to the rotation of molecules having permanent electric dipoles. Debye ignored inertial effects and assumed that the molecules were spherical, with an intrinsic, fixed dipole moment. He derived expressions for the dielectric relaxation time and for the permittivity. These formulae have been successfully applied to many materials. However, Debye's expression for the permittivity predicts that the absorption tends toward a constant value when the frequency of the applied electric field becomes very large—the "Debye plateau". This is not observed; instead,