Análisis De Inversiones Bajo Riesgo: Simulación (Including the Risk in the Analysis: Montecarlo Simulation)

Abstract:     
This is a course material from the book Managerial Decision Making Under Risk and Uncertainty. The book is originally in Spanish and is untitled as Decisiones empresariales bajo riesgo e incertidumbre. The level of the book is basic. We use very few mathematics and it is expected to be used by managers.

In this seventh chapter we introduce the reader to the simulation tools. First we use very simple examples and finally we isllustrate the results of a complex example. We discuss the proper discount rate to use when we introduce explicitly the risk in the analysis. We use intensively the spreadsheet.

Note: Downloadable document is in Spanish

Number of Pages in PDF File: 73

Keywords: Risk analysis, Montecarlo Simulation, decisions under risk

JEL Classification: G31

working papers series