Saturday, 30 January 2016

Notes on "Investment Decision Making and Risk" (Virlics, Agnes)

Investment Decision Making and Risk
Virlics, Agnes
Procedia Economics and Finance, 2013, Vol.6, pp.169-177

Avram et al. (2009) define the universal investment as expenditure made now to make gains in future. 

Harcourt et al., 1967:
The decision, whether to make an investment or not, depends upon the investor’s profit expectation, the cost of the asset and availability to finance the investment, and how to finance that.

the paper shows how investment decision is approached by the economic theory, what role has the risk and uncertainty in the decision making process

decision making process is based on:
objective, punctual analysis of the investment and its possible outcomes and its calculated payoff

subjective perspective of they investor 

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