Definition: Stochastic Risk Valuation (SRVP) is a method used in financial modeling and investment analysis for estimating the risk of an asset or portfolio from historical data. It involves using a model that predicts future returns based on historical performance data, adjusting for uncertainties such as market conditions, liquidity, and other factors. This process helps investors to make informed decisions about how to allocate their capital and manage risk in financial instruments.
StochSRVP_1