Tuesday, September 1, 2015

stochastic calculus - What is the mean and the standard deviation for Geometric Ornstein-Uhlenbeck Process?


I am uncertain as to how to calculate the mean and variance of the following Geometric Ornstein-Uhlenbeck process.


$$d X(t) = a ( L - X_t ) dt + V X_t dW_t$$


Is anyone able to calculate the mean and variance of this process as well as include the calculations for the solution?




No comments:

Post a Comment

technique - How credible is wikipedia?

I understand that this question relates more to wikipedia than it does writing but... If I was going to use wikipedia for a source for a res...