Stock market is basically volatile and the prediction of its movement will be more useful to the stock traders to design their trading strategies. An intelligent forecasting will certainly abet to yield significant profits. Many important models have been proposed in the economics and finance...

The analysis of diffusion processes in financial models is crucially dependent on the form of the drift and diffusion coefficient functions. A methodology is proposed for estimating and testing coefficient functions for ergodic diffusions that are not directly observable. It is based on...