A series solution to asset valuation and pricing of linear evolution equations with stochastic partial derivatives

Resum

The achievement of any investment depends mainly on the value of asset which impels the entire financial power of every company and differential equations are well known prevailing mathematical tool used for the prediction of stock prices. Therefore, this paper, considered four investment equations with stochastic and stock return rates parameters in the model. Detailed conditions are achieved which govern asset price return rates through multiplicative effects, additive invers effects, multiplicative inverse effects, stock volatility and asset growth-rates of assets parameter respectively. Consequently, the impacts on the value of asset prices of investors in capital market were analyzed; and graphical results of stock variables and the effect of relevant parameters were discussed for the purpose of investment plans.