Spatial graphic interpretation of the foster-hart formula
Spatial graphic interpretation of the foster-hart formula

Summary/Abstract: This article deals with the problem of spatial interpretation of graphical Foster-Hart formulas. The proposed approach allows the assessment of investments with specific expected payouts. This approach may also be, in a certain sense, considered as generalization in relation to the evaluation, as the author has shown how to interpret certain investment cases.It is also important that in a similar way, one can also evaluate all portfolios,which consist not only of financial instruments, but also other investment assets. The paper presents the idea of the Foster-Hart measurement on the basis of the analysis of a hypothetical action, and all simulation tests were carried out in MAT LAB programming environment.

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