In the Cox-Ingersoll-Ross (CIR 1985)model,you are given that $d r _ { t } = x \left( \theta - r _ { t } \right) d t + \sigma \sqrt { r _ { t } } d W _ { t }$ where $x = 0.5$ , $\theta = 0.06$ , $\sigma = 0.10$ ,and the current short rate of interest is $r _ { 0 } = 0.08$ .What is the expected short rate of interest one year hence?
A)6.6%
B)7.2%
C)7.6%
D)8.2%

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The Answer of In the Cox-Ingersoll-Ross (CIR 1985)model,you are given that $d r _ { t } = x \left( \theta - r _ { t } \right) d t + \sigma \sqrt { r _ { t } } d W _ { t }$ where $x = 0.5$ , $\theta = 0.06$ , $\sigma = 0.10$ ,and the current short rate of interest is $r _ { 0 } = 0.08$ .What is the expected short rate of interest one year hence?
A)6.6%
B)7.2%
C)7.6%
D)8.2%

In the Cox-Ingersoll-Ross (CIR 1985)model,you Are Given That drt=x(θ−rt)dt+σrtdWtd r _ { t } = x \left( \theta - r _ { t } \right) d t + \sigma \sqrt { r _ { t } } d W _ { t }drt​=x(θ−rt​)dt+σrt​​dWt​

In the Cox-Ingersoll-Ross (CIR 1985)model,you Are Given That $d r _ { t } = x \left( \theta - r _ { t } \right) d t + \sigma \sqrt { r _ { t } } d W _ { t }$