3. The Ornstein-Uhlenbeck process is the solution to the equation dX (t)=-2X (t)dt + odZ (1) where 1 and o are positive parameters. Derive the solution for X(t). 4. (10 marks) just question 3 please Consider an arbitrage-free securities market model, in which the risk-free interest rate is (i) Determine the composition of the market portfolio with expected return 18% per annum. (02 marks) (ii) (ii) Calculate the beta of each security under the assumption that the risk-free rate of interest is 10% per annum. (01.50 + 01.50 marks) 3. The Ornstein-Uhlenbeck process is the solution to the equation dX (t)=-2X (t)dt +odz(t) where 2 and o are positive parameters. Derive the solution for X(t). 4. (10 marks) 2/4 Consider an arbitrage-free securities market model, in which the risk-free interest rate is 3. The Ornstein-Uhlenbeck process is the solution to the equation dX (t)=-2X (t)dt + odZ (1) where 1 and o are positive parameters. Derive the solution for X(t). 4. (10 marks) just question 3 please Consider an arbitrage-free securities market model, in which the risk-free interest rate is (i) Determine the composition of the market portfolio with expected return 18% per annum. (02 marks) (ii) (ii) Calculate the beta of each security under the assumption that the risk-free rate of interest is 10% per annum. (01.50 + 01.50 marks) 3. The Ornstein-Uhlenbeck process is the solution to the equation dX (t)=-2X (t)dt +odz(t) where 2 and o are positive parameters. Derive the solution for X(t). 4. (10 marks) 2/4 Consider an arbitrage-free securities market model, in which the risk-free interest rate is