Problems associated with the determination of risks in the financial markets

Authors

  • Murad R. Taghiyev The Baku State University

DOI:

https://doi.org/10.62343/cjss.2023.233

Keywords:

risks, covariance, correlation coefficient, probability distribution

Abstract

The article is devoted to the problem of measuring risks in financial markets. From various complex scientific definitions, it synthesizes an intelligent definition of entropy. Furthermore, risk is considered a probabilistic criterion, described in connection with the normal probability distribution. The next step suggests a method for calculating the risk index for practitioners not burdened with deep mathematical knowledge, using the covariance index and the determination of the Sharpe ratio. Recommendations are provided at the end of the article.

Downloads

Published

30.12.2023

How to Cite

Taghiyev, M. R. (2023). Problems associated with the determination of risks in the financial markets. Caucasus Journal of Social Sciences, 16(1), 141–148. https://doi.org/10.62343/cjss.2023.233

Issue

Vol. 16 No. 1 (2023)

Section

Research papers

License

Copyright (c) 2023 Murad R. Taghiyev

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

In case an article is accepted for publication it is allowed to combine the article with other research, to conduct new research on the article, or to make different arrangements on condition that the same license is used including commercial purposes.

As an author of an article published in the Caucasus Journal of Social Sciences, you retain the copyright of your article and you are free to reproduce and disseminate your work.