Analysis of Infrastructure Investment Risks by VaR
This paper puts forward the VAR in the application of infrastructure construction investment risks. Firstly, infrastructure construction investment risk of the application of VAR in our country is necessary, and through VAR calculation methods including History Simulation method, Risk Metrics method, Monte Carlo method and Variance-covariance method we know how to use VAR for measuring risk in infrastructure construction. The paper mainly discuss Variance-covariance method to deal with infrastructure investment risk by concrete examples. At last, foreground of using VAR in infrastructure construction is analyzed and put forward a new calculation method CVAR.
KeywordsInfrastructure Construction VAR Investment
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