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In this tutorial you will learn what is Brownian motion and its extension to Arithmetic Brownian Motion (ABM) and Geometric Brownian motion (GBM). You will also learn how to simulate and calibrate AGM, GBM. To understand this tutorial, you need to know at least, what normal distribution and log-normal distribution are. Calculus is not required.

## Contents

What is Brownian motion?

What is Arithmetic Brownian Motion?

What is Geometric Brownian Motion?

Simulation of Brownian motion in Excel

Simulation of ABM in Excel

Simulation of GBM in Excel

Parameters Estimation in ABM

Parameters Estimation in GBM

Summary

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These tutorial is copyrighted .

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Preferable reference for this tutorial is
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Teknomo, Kardi. (2017) Stochastic Process Tutorial .

http://people.revoledu.com/kardi/tutorial/StochasticProcess/