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

73 Pages Posted: 28 Mar 2012 Last revised: 2 Aug 2013

See all articles by Ignacio Velez-Pareja

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Luciano Machain

University of Reading - Henely Business School - ICMA Centre

Date Written: October 20, 2003

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

Keywords: Risk analysis, Montecarlo Simulation, decisions under risk

JEL Classification: G31

Suggested Citation

Velez-Pareja, Ignacio and Machain, Luciano, Análisis De Inversiones Bajo Riesgo: Simulación (Including the Risk in the Analysis: Montecarlo Simulation) (October 20, 2003). Available at SSRN: https://ssrn.com/abstract=986972 or http://dx.doi.org/10.2139/ssrn.986972

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

Luciano Machain

University of Reading - Henely Business School - ICMA Centre ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

HOME PAGE: http://www.icmacentre.ac.uk/

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