Open AccessEvaluation of investing risk in gold, compared with the stock
Author(s) -
Fatemeh Shirgholami,
Daryush Farid
Publication year - 2019
Publication title -
journal of management and accounting studies
Language(s) - English
Resource type - Journals
ISSN - 2693-8448
DOI - 10.24200/jmas.vol3iss01pp41-46
Subject(s) - stock (firearms) , value at risk , portfolio , stock exchange , financial risk , investment (military) , investment portfolio , risk measure , econometrics , actuarial science , business , financial economics , economics , risk management , finance , engineering , mechanical engineering , politics , political science , law
This study aims to investigate and compare the investment risk between the gold and the stock using Value at Risk (VaR) measure. It is one of the known methods to measure, forecast and manage the risk and has been of interest in recent years to financial institutions. Methodology: The VaR is a method for assessment and identification of risk, which makes use of standard statistical techniques applied ordinarily in other areas. Results: This investigation is seeking to find an appropriate solution for managing the risk of investment in the stock exchange and the precious metals (gold) and to select an optimal portfolio using the concept of VaR. Conclusion: Finally, the optimal volume of investment in the stocks and the gold is determined.