APPLICATION OF NON-LINEAR EVOLUTION STOCHASTIC EQUATIONS WITH ASYMPTOTIC NULL CONTROLLABILITY ANALYSIS

Abstract

This paper investigated system of stochastic differential equations with prominence on disparities of drift
parameters. These problems were solved analytical by adopting the Ito’s method of solution and three
different investment solutions were obtained consequently. The necessary conditions were achieved
which govern various drift parameters in assessing financial markets. Therefore, the impressions on each
solution of investors in financial markets were analyzed graphically. Secondly, stock price data of
Transco, LTD were analyzed which covariance matrix were considered and analysis were logically
extended to stochastic vector differential equation where control measures were incorporated that would
help in predicting different stock price processes, and the result obtained by exploring the properties of
the fundamental matrix solution where asymptotic null controllability results were obtained by the
singularity of the controllability matrix a function of the drift. Finally, the effects of the significant
parameters of stochastic variables were successfully discussed.