Risk and Monte Carlo simulation
Whenever the outcome of a situation is not perfectly certain you have uncertainty or risk.
February, 2008
Risk, price and value
Having arrived at the probability distribution for the value of equity, we are able to calculate expected gain, loss and their probability when investing in a company …
Real options
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.