keywords: Markov chain, assets price, fall, rise, stable
The financial stock market is characterized by high volatility; therefore the gain or loss of the stockholder greatly hangs on the understanding of the market by the investor, which turns dependent on his grasp of the stocks market to foresee the changes in prices of an asset that might increase because of many fluctuating features. The study appraises asset pricing using a three-state Markov chain model