Question: Explain how Cowles function becomes P(t + change in t) = P(t) e^Y (in relation to stock returns indices) Z(change in t) = sum(from Specifically

Explain how Cowles function becomes P(t + change in t) = P(t) e^Y

(in relation to stock returns indices)

Z(change in t) = sum(from

Specifically can you explain how Z relates to higher-priced stocks and becomes the mean absolute of dispersion.(i.e mean error).

This is in relation to Brownian motion

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