Improved Method Of Solving The Problem Of Value At Risk

As the economy continues to develop, More and more investors demand more accurate and precise investment information. Value at Risk has been favored by the majority of financial managers and investors, use of value at risk can better predict the risk of investment, at the same time and can make rational investment behavior of early warning.Similar to many articles from different aspects of solving the value at risk, Such as variance, historical simulation, Monte Carlo method, different methods have different features and benefits apply to different investment environment.This paper mainly introduced on the basis of the variance method for solving the value at risk, to give a more accurate solution method.1.the use of statistical knowledge, the use of interval estimation of simple digital conversion of solving the past for a more precise range of a controllable, in order to more accurately calculate the risk value for investors to provide a more accurate basis.2. In this article, we will continue to set the risk rate of return to a normal distribution, and statistical methods to solve the rate of return, so as to calculate the value at risk. With previous methods, the rate of return calculation in this paper is not a mere figure, but a more credible interval range, giving investors a better, more credible evidence..Finally, this paper describes an extension of the value at risk, the characteristics and limitations of the scope of application of the VaR, value at risk.