Research On Investment Return As Financial Random Process's Functional Analysis

With the rapid development of China's capital market,individual investors' investment concept has been changed and investment form also has been changed from short-term arbitrage to long-term hold.However,most individual investors lack asset management knowledge,investment decisions made by them are lack of proof and rational thinking.The direct index measure of decision quality is investment return,and in the financial market returns index with stochastic process,,it definitely need to establish a rational investment strategy for investors to analyze random process return.The core content of this paper is the theoretical part.The theoretical research is divided into the following three stages: first,elaborated the functional form for the proposed adding revenue strategy and multiplying revenue strategy,improved the original theory and proved the advantage of using functional analysis in analyzing financial stochastic process,the return rate and price.Secondly,when return rate or price meets the specific financial stochastic process(normal distribution,Generalized Wiener process,geometric Brown motion and O-U stochastic process)or the return rate meets certain time-series correlations,this paper deuced the return functional analysis result in adding revenue strategy and multiplying revenue strategy;finally,investment endowment constraints faced different investors under the background of the life cycle investment,derived equations for these two strategies.In this paper,the simulation analysis are used in the verification of the theoretical results.On the one hand,the functional properties of random yield has been tested;on the other hand,this paper verified the validity of each period initial endowment investment adjustment strategy.Theoretical study and simulation analysis,used in this paper,aimed at obtaining the character of functional analysis and applied it into the strategy adjustment.In this research,we also used life-cycle investment theory to build constraints equations based on investor's own demand and background.This paper is desired to offer valid strategy basis for investor to make investment decisions.