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Integrace rizika a nejistoty do investičního rozhodování a oceňování
[The Risk and Uncertainty Integration into the Investment Decision and Evaluation]

Author

Listed:
  • Jiří Fotr
  • Eva Kislingerová

Abstract

The qualitative changes in surroundings for companies operation are calling for necessity of assertion new tools and method, which will help to increase the quality of decision making and firm evaluation. To these tools belong scenarios and Monte Carlo simulation. The aim of the article is to describe these tools, their common features and differences, advantages and disadvantages. Further results and benefits of application of Monte Carlo simulation in risk analysis of investment project from economic practise are demonstrated.

Suggested Citation

  • Jiří Fotr & Eva Kislingerová, 2009. "Integrace rizika a nejistoty do investičního rozhodování a oceňování [The Risk and Uncertainty Integration into the Investment Decision and Evaluation]," Politická ekonomie, Prague University of Economics and Business, vol. 2009(6), pages 801-826.
    • Handle: RePEc:prg:jnlpol:v:2009:y:2009:i:6:id:711:p:801-826
    DOI: 10.18267/j.polek.711
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    References listed on IDEAS

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    1. Nalin Kulatilaka & Enrico C. Perotti, 1998. "Strategic Growth Options," Management Science, INFORMS, vol. 44(8), pages 1021-1031, August.
    2. Michael J. Leiblein & Douglas J. Miller, 2003. "An empirical examination of transaction‐ and firm‐level influences on the vertical boundaries of the firm," Strategic Management Journal, Wiley Blackwell, vol. 24(9), pages 839-859, September.
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    More about this item

    Keywords

    investment; Monte Carlo simulation; flexibility; risk; uncertainty; valuation; real options; risk analysis; scenarios;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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