That`s a good point. Although Itô didn`t write directly this result, it is contained in Itô’s lemma itself, if we put f( x) = log(x).

Of course, there are multiple ways to derive the formula for mu, but to my knowledge, this is the first approach historically.

Ihor Kendiukhov
Ihor Kendiukhov

Written by Ihor Kendiukhov

VC, deep tech, and finance expert and analyst with an educational background in economics and biology focused on disruptive technologies and markets.

No responses yet