The Effects of Initial Stock Prices on the Analysis of Asset Value Function for Capital Market
I. U. Amadi *
Department of Mathematics & Statistics, Captain Elechi Amadi Polytechnics, Port Harcourt, Nigeria.
C. F. Uchechukwu
Department of Mathematics & Statistics, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt, Nigeria.
P. A. Azor
Department of Mathematics & Statistics, Federal University, Otuoke, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
The chances of a trader or an investor in capital market lies majorly on some levels of decision due to asset values and its returns, which is the basis of a system working assiduously. In this paper a stochastic model was proposed using time delay as a key parameter. The analytical solution was obtained which determined asset values and its return rates for only periodic events by means of additive effects. A goodness of fit test was obtained to show or identify classes of probability distributions the random processes of which generated the asset values based on the variation of initial sock- prices under-study. However, the Tables, graphical results and the impact of time delay was effectively discussed for all the periods.
Keywords: Asset value, goodness of fit test, additive effects, SDE and SDDE