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The classical long-period method does not stick strictly to stationary prices.
First, on what conditions are there stationary prices in System (17)?
Second, what condition guarantees that the sequences of price solutions to System (17) converge to stationary prices?
Therefore it is assumed that the sequences of price solutions converge to the stationary prices so long as the latter exist.
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We simply focus on the 'daily weakly stationary' price series, which implies that the mean and standard deviation of prices do not change much on different days.
If the price series is stationary, the price series processing result in the latter step is available for multiple auctions.
dIf the price series is not stationary, the price data are first de-trended, and the trend is added to the discount rate in present value calculations.
Li et al. (2009) considered a supply contracting problem in which the buyer firm faces non-stationary stochastic price and demand.
Fisher-Price Stationary Bike.
Peloton is on the high end of stationary bike equipment, price-wise.
A unit root test can be used for such examination (Hassan et al., 2007) because market efficiency stipulates randomness (non-stationary) in the prices of securities.
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