pan>S <span class="ot">=</span> mdt <span class="sc">+</span> sdW</span></code></pre><p></p></div>
<p>where S is the price of the asset, t is time, m is the expected return on the
asset, s is the volatility of the asset, and dW is a small random change in
the asset's price.</p>
<p>GBM can be used to estimate the likelihood of different outcomes for a given
asset, and it is often used in conjunction with other statistical methods to
make more accurate predictions about the future performance of an asset.</p>