Question: Explain what we mean by a geometric Brownian motion (GBM) and if it is a reasonable representation of the real world behaviour of stock

Explain what we mean by a "geometric Brownian motion" (GBM) and if

Explain what we mean by a "geometric Brownian motion" (GBM) and if it is a reasonable representation of the "real world" behaviour of stock prices. Explain what information is required to simulate daily "real world" stock prices (over several periods) using a GBM.

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