A Simulation Approach to Risk Assessment in Investment Analysis

A simulation technique is advanced as a means of determining the probability of achieving various possible financial outcomes when assessing alternative investments. To this end a model is constructed and applied to a proposed investment in pasture improvement. Results are contrasted with a deterministic budget approach. The model uses triangular distributions to derive probabilistic estimates for the stochastic events considered. Possible fields of application of interest to agricultural economists are discussed.


Issue Date:
1970-03
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/9614
Published in:
Review of Marketing and Agricultural Economics, Volume 38, Number 01
Page range:
3-24
Total Pages:
22




 Record created 2017-04-01, last modified 2017-08-23

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