Brownian model of financial markets as: Note that formula_21 and formula_139 are absolutely continuous with respect to each other, i.e. they are equivalent. Also, according to Girsanov's theorem, is a formula_6-dimensional Brownian motion process on the filtration formula_146 with respect to formula_139. A complete financial market is one that allows effective hedging of the risk inherent in any investment strategy. Let formula_89 be a standard financial market, and formula_149 be an formula_140-measurable random variable, such that: The market formula_89 is said to be "complete" if every such formula_149 is "financeable", i.e. if there is an formula_155-financed portfolio process formula_156, such that its associated wealth process
Brownian bridge Brownian bridge A Brownian bridge is a continuous-time stochastic process "B"("t") whose probability distribution is the conditional probability distribution of a Wiener process "W"("t") (a mathematical model of Brownian motion) subject to the condition (when standardized) that "W"(T) = 0, so that the process is pinned at the origin at both "t=0" and "t=T". More precisely: The expected value of the bridge is zero, with variance formula_2, implying that the most uncertainty is in the middle of the bridge, with zero uncertainty at the nodes. The covariance of "B"("s") and "B"("t") is "s"(T − "t")/T if "s" < "t". The