Tag: "Decision tree"

Selecting Strategy

Selecting Strategy

| 22/07/2009

When there is no uncertainty the maximum return criterion can be used to rank strategies. With uncertainty we have to look for the strategy that maximizes the firms expected utility.

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Real options

Real options

| 16/02/2008

In real life both for investment decisions and in valuation of companies there are managerial flexibility in the sense that at future points of time there is flexibility in choosing among alternatives.

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