A Review on Geometric Brownian Motion in Forecasting the Share Prices in Bursa Malaysia

Abstract

The application of Geometric Brownian motion to forecast share prices is reviewed. Formula of Geometric Brownian motion is analyzed and examined to meet the fluctuation of share prices. Uncertainty and unpredictability share prices makes it difficult for investors to forecast future prices . Thus, this reviewed paper aims to state the importance of application of Geometric Brownian Motion into share prices and helps the investors to forecast future prices for the short-term investment. This paper will elaborate geometric Brownian motion involving the randomness, volatility and drift that can help investors in making their investment decision wisely.

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Cite this paper

@inproceedings{Nazifah2013ARO, title={A Review on Geometric Brownian Motion in Forecasting the Share Prices in Bursa Malaysia}, author={S Norsima Nazifah and Zainol Abidin and Siti Nazifah Zainol Abidin and Maheran Mohd Jaffar}, year={2013} }