Random Walk and Drift

In quants, we speak about random walk with drift and that if we have a drift, b0 is different than 0, but what exactly is the drift supposed to mean?

It means that b0 ≠ 0.

Literally, that’s the definition of drift.

Tomorrow’s value is expected to be larger than today’s.

Or, tomorrow’s value is expected to be smaller than today’s.

thanks magician

You’re welcome.