Suppose Risk of Probability Distribution and Investment Choice
Shuli Gao · Journal of Shanghai Lixin University of Commerce · 2009
Starting with the controversy of subjective probability and objective probability and combining with the unknowable probability distribution of financial asset investment in reality,we discuss the suppose risk of probability distribution in the analysis of financial asset investment.At the same time we explore the control of the suppose risk of probability distribution and the optimizing of investment decision by Bays learning process and sequence decision.The conclusion is that sequence decision based on Bays analysis is effective not only on improving the expected income and but also on controlling the suppose risk of probability distribution.