Initiation to risk analysis in projects valuation and application of the Monte Carlo simulation
This article is a bibliographic review that describes a way to perform risk analysis in financial and economic projects valuation. Firstly, the article treats the notion of uncertainty and risk, then how to implement an integrated risk analysis framework in the valuation of projects. Secondly, it ex...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Institut Agronomique et Vétérinaire Hassan II
2019-03-01
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| Series: | Revue Marocaine des Sciences Agronomiques et Vétérinaires |
| Subjects: | |
| Online Access: | https://www.agrimaroc.org/index.php/Actes_IAVH2/article/view/680/733 |
| Summary: | This article is a bibliographic review that describes a way to perform risk analysis in financial and economic projects valuation. Firstly, the article treats the notion of uncertainty and risk, then how to implement an integrated risk analysis framework in the valuation of projects. Secondly, it explains the origin of the Monte Carlo simulation and describes its concept and the concept of non-parametric simulation. Then, the article provides some indicators and statistics that make possible to use and interpret the results of the simulation. Finally, it introduces the probabilistic sensitivity analysis that comes from simulation providing some of its numerical and graphical outputs. |
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| ISSN: | 2028-991X 2550-4401 |