Abstract
The process of share price formation is studied in the article as well as a random process, and a model is developed that describes a random process that has characteristics close to the Brownian bridge, and realizes a multiplicative model of the bond price evolution with outpaced repayment time and normal value. The definition of a random process of forming a share price through a geometric Brownian bridge is also given. Since the Ukrainian insurance market is at the initial stage of development, and the country's economy is unstable, insurance companies need practical and reliable tools for calculating and forecasting the expected return on investment activity. And especially urgent for this particular type of activity is the issue of breakeven investment, as insurance companies can’t afford risky investment because of the specifics of their activities. As a research result, the level of investing in a risk-free asset for an insurance company of a cumulative type is calculated.
Highlights
With the development of the insurance market, more people are using life insurance to create capital
Schedules of share prices are chaotic in nature
The value of the price of the share St at time t is assumed to be a random variable, which determines some random process in time t∈[0, +∞)
Summary
With the development of the insurance market, more people are using life insurance to create capital. The issue of the investment activities of insurance companies that have significant differences from other facilities in the market has not yet been fully explored. In this regard, it is relevant to study the features of the investment activities of life insurance companies, to improve their reliability and stability. It is relevant to study the features of the investment activities of life insurance companies, to improve their reliability and stability This topic is relevant, because insurance companies accumulate significant capital, which can be increased through various investment tools. The availability of reliable instruments for calculating the expected profi tability of investment instruments can ensure the stability of the insurance company at the market
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