Risk glossary
Risk glossary
Search for the definition you are looking for.
Stochastic process
Stochastic process is a process or system that is driven by random variables, or variables that can undergo random movements. For instance, stock prices are subject to chance movements and hence can be forecasted using a stochastic process. An example of a stochastic process is the random walk that is described by a path created by a succession of random steps.
Click here for articles on stochastic process.