Risk Measurement of Securities and Empirical Study Based on Reference Point Transfer

Because agents are not properly described by current measurement of risk, After analyzing and summarizing the definition and measurement of risk, according to prospect theory, this paper find out reasons are description of risk´s two traits doesn´t accord with human cognitive psychology and same measurement is used in the different frame of winning state and lost state because reference point is chose on improper level. According to aforementioned problems and prospect theory, reference point is transferred from the level of winning state and lost state to the level of price ascending and descending, then a corresponding model is established, finally advantages of model are explained by an empirical example.