Assessing Asset Value Changes Using a System of Stochastic Models with Constant Terms and Periodic Drift Coefficients

The Stochastic Differential Equation (SDE) is well known prevailing mathematical tools used for the estimation of asset values over time. In particular, this paper considered stochastic systems with prominence on variations of stock parameters. These problems were solved an alytically by implementing the Itˆ o’s method of solution where precise measures were given on the assessments of asset values.Therefore, the impressions on Tables for investors in financial markets were analyzed to demonstrate empirically the behavior of asset values when volatility increases. Also the expectations of each independent solution were obtained graphically. From the analysis we deduce that ; increase in volatility decreases the value of assets, increase in volatility shows rise and fall in the assessments of asset values due to periodic parameter incorporated in the model, and finally describes the average value of the asset over time as it affects financial markets in time varying investments. This work presents a unique contribution and first-time approach that is, assessing asset values by modeling stock drift coefficients, with some constants and periodic event parameters.

Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2025-08-04
DOI
https://doi.org/10.5281/zenodo.16740759
Primary Topic
Stochastic processes and financial applications
Type
article
Field-Weighted Citation Impact
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article

Assessing Asset Value Changes Using a System of Stochastic Models with Constant Terms and Periodic Drift Coefficients

Zenodo (CERN European Organization for Nuclear Research)
Stochastic processes and financial applications
article

Assessing Asset Value Changes Using a System of Stochastic Models with Constant Terms and Periodic Drift Coefficients

article en

Abstract

The Stochastic Differential Equation (SDE) is well known prevailing mathematical tools used for the estimation of asset values over time. In particular, this paper considered stochastic systems with prominence on variations of stock parameters. These problems were solved an alytically by implementing the Itˆ o’s method of solution where precise measures were given on the assessments of asset values.Therefore, the impressions on Tables for investors in financial markets were analyzed to demonstrate empirically the behavior of asset values when volatility increases. Also the expectations of each independent solution were obtained graphically. From the analysis we deduce that ; increase in volatility decreases the value of assets, increase in volatility shows rise and fall in the assessments of asset values due to periodic parameter incorporated in the model, and finally describes the average value of the asset over time as it affects financial markets in time varying investments. This work presents a unique contribution and first-time approach that is, assessing asset values by modeling stock drift coefficients, with some constants and periodic event parameters.

Zenodo (CERN European Organization for Nuclear Research)
Openalex Percentile: Top 43%
Stochastic processes and financial applications
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Assessing Asset Value Changes Using a System of Stochastic Models with Constant Terms and Periodic Drift Coefficients · Zenodo (CERN European Organization for Nuclear Research) (2025) | TGRS Research Map | TGRS