Question: b) Let Xt be a stochastic process that satisfies the equation dXt = rat + odB, where r and o are strictly positive constants. Obtain

b) Let Xt be a stochastic process that satisfies the equation dXt = rat + odB, where r and o are strictly positive constants. Obtain stochastic differential equations for: i) Me = ext ii) Dt = Xt and, iii) Ht = 1 1+Xt [6 marks]

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