Random walk simulation

Random walk is a simulation where a succession of random steps is used to represent an apparently random event. The interesting thing is that we can use this kind of simulation to see different outputs from a certain event by controlling the start point of the simulation and the probability distribution of the random steps. Similar to all the simulations, this simulation is just a simplified model of the original phenomena. However, a simulation may be useful and is a powerful visualization tool. There are different motions of random walks using different implementations. The most common are Brownian motion and binomial model.

In the following figure, we can see the simulated data from random walk model for logged stock prices:

Brownian motion is a random walk model named after the physicist Robert Brown, who observed molecules moving and colliding with one another in random fashion. Brownian motion is usually used to model stock prices. According to the work of Robert...