Approximate Solutions for Non-Linear Evolution Stochastic Equations with Variations of Drift Parameters

Abstract

This paper considered system of stochastic differential equations with emphasis on variations of drift parameters as it affects financial markets. The Ito’s method was applied in solving the problems analytically which resulted to three different investment solutions accordingly. The appropriate conditions were accomplished which controlled various drift parameters in the assessment financial markets. Hence, the impressions on each solution of investors in financial markets were analyzed graphically. Finally, the influences of the relevant parameters of stochastic variables were effectively discussed all in this paper.