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 (astronomy) slingshot. It can be shown that the rms change in the binary's orientation, from the time the binary forms until the two black holes collide, is roughly formula_21 In a real galaxy, the two black holes would eventually coalesce due to emission of gravitational waves. The spin axis of the coalesced hole will be aligned with the angular momentum axis of the orbit of the pre-existing binary. Hence, a mechanism like rotational Brownian motion that affects the orbits of binary black holes can also affect the distribution of black hole spins. This may explain in part why the spin axes