Work

Stochastic Model on Share Price Movements in Finite State with Asymptotic Null Controllability Properties

Year: 2025

Type: article

Abstract: In this paper, a stochastic model of Markov chain and asymptotic null controllability properties for share prices were considered for decision making. The three-step transition probability and controllability matrices were developed and analyzed for independent banks such as Access and Fidelity, respectively. The précised measures which govern future share price changes for prediction were obtained. Furthermore, controllability analyses were conducted to demonstrate the non-singularity of the controllability matrices regarding the share prices of the two banks. This indicates to investors that the financial market is poised for stability in the long term, which constitutes the main focus of this paper. Several examples were provided to illustrate the dependability and efficiency of the model.

DOI: 10.56557/ajpam/2025/v7i1193

Authors: Amadi, Innocent Uchenna, Uyodhu Amekauma Victor-Edema

Institutions: Captain Elechi Amadi Polytechnic, Rumuola, Ignatius Ajuru University of Education

Language: English

Topic: Stochastic processes and financial applications

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

OpenAlex ID: W4410049297

FWCI:

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