Interpretation for Several Axioms of Risk Measure Function

Li-jiang ZENG, Zhang-yi GONG

Abstract


In financial investment, profits and risks is always accompanied by. It is always need to face some risk for the sake of profit. In this paper, to aimed at risk axiom, by utilizing the function of risk measures, using the mathematical method of interpretation the 9 axiom one by one. It is expounded how to as much as possible to reduce the financial risk of investors using mathematical theory. In order to study the risk function, meantime we introduced another positive do auxiliary function, and it make questions about risk function eventually gets satisfactory interpretation.

Keywords


Probability measure, Economic capital, Risk investment, Axioms


DOI
10.12783/dtssehs/iceme2019/29591

Full Text:

PDF