Hi.

I'd like to generate 5,000 paths of daily stock prices over a year
(assuming geometric Brownian motion).  I've seen a sample program that
generates random stock prices.  But those are possible prices for one
day.  Since I want price paths over a year, I'd like to know how to
string those daily prices together to create a path.  Has anyone done
this before?  If so, any suggestion or sample code would be much
appreciated.  Thanks.

In essence, you could generate series of random rate of return where you can 
define the distribution of such return.  You start off with current price 
and tomorrow's price is P(t+1) = P(t) * (1 + randdom).  The next day you do 
the same.  I must warn you that the return must have a positive mean or the 
price will drift to zero.  Then if you are not careful you will end up with 
negative price, which is impossible.

"everton" <bbus505@hotmail.com> wrote in message 
news:d50838c1-d132-4115-aca1-e2c61fb373cf@30g2000yqu.googlegroups.com...
> Hi.
>
> I'd like to generate 5,000 paths of daily stock prices over a year
> (assuming geometric Brownian motion).  I've seen a sample program that
> generates random stock prices.  But those are possible prices for one
> day.  Since I want price paths over a year, I'd like to know how to
> string those daily prices together to create a path.  Has anyone done
> this before?  If so, any suggestion or sample code would be much
> appreciated.  Thanks.