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Financial Risk Quantification Research Based on Monte Carlo Simulation

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DOI: 10.23977/edms.2019.006


Jingsong Wu

Corresponding Author

Jingsong Wu


With the continuous development of the financial industry, financial risk management has become more and more important. The method of using it to do scientific risk measurement has gradually become a hot research field. This paper is aimed at the financial industry's widely accepted risk quantitative analysis method VaR (Value at Risk) conducted related research. Firstly, the three main aspects of VaR application are analyzed, and the Monte Carlo simulation principle is elaborated. Secondly, the price of the index is the Monte Carlo model for the research data. Finally, the model is verified and the research results show that the model can effectively measure financial risks.


VaR, Financial Risk Quantification, Monte Carlo Simulation

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