A Simulation Approach to Risk Assessment in Investment Analysis

P.A. Cassidy, J.L. Rodgers and W.O. McCarthy

Review of Marketing and Agricultural Economics, 1970, vol. 38, issue 01, 22

Abstract: 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.

Keywords: Financial Economics; Risk and Uncertainty (search for similar items in EconPapers)
Date: 1970
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:remaae:9614

DOI: 10.22004/ag.econ.9614

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