How do you simulate a random walk in R?
How do you simulate a random walk in R? 1 Random Walk. We first construct a random walk function that simulates random walk model. It takes the number of period (N), initial value (x0), drift (mu), and variance. The function use rnorm() to generate random normal variable, and then use cumsum() to get the random walk. What is random walk simulation? Random walk is a simulation where a succession of random steps is used to represent an apparently random event. There are different motions of random walks using different implementations. The most common are Brownian motion and binomial model. How...