43 1 Finance originates from European financial theory, which mainly emphasizes risk management and asset pricing. This theory measures the influence of different market variables on portfolio and asset prices through quantitative modeling. Its main purpose is to improve the risk-return ratio of portfolio, so it is widely used in asset management, securities market and financial derivatives.

43 1 Finance includes four key investment elements, namely, risk correction, strategy and trading, risk management and psychological management. These elements correspond to four key aspects in the investment process of financial products such as stocks. The theory takes risk management as the core, controls risks by setting risk limits, and avoids unnecessary risks as much as possible while ensuring the return on investment. At the same time, it also provides guidance for following specific trading strategies and controlling psychological state in trading.

43 1 finance is widely used in financial derivatives market and hedge funds, which makes it an increasingly important theory. This theory can help investment managers to formulate better investment strategies and risk management schemes, so as to obtain higher returns and effectively protect investors' assets. In a word, the theoretical system of 43 1 finance provides a solid theoretical basis for management and investment decision-making in the financial field.