If a Variable X Follows the Process Dx = B

question 12

Multiple Choice

If a variable x follows the process dx = b dz where dz is a Wiener process,which of the following is the process followed by y = exp(x) .

• A) dy = by dz
• B) dy = 0.5b2y dt+by dz
• C) dy = (y+0.5b2y) dt+by dz
• D) dy = 0.5b2y dt+b dz

---

Definitions:

Clarity

The quality of being easily understood, clear in expression, intention, or meaning.

Feedback

Information provided about the result of a process or activity, used for improvement or as a basis for making decisions.

Writing

The act, process, or skill of creating coherent text to communicate ideas, stories, or information.

Proofreading

The process of reviewing text to correct grammatical, typographical, or formatting errors.