The Calculation of Volatility in Real Option Investment Decision-Making Model Using System Dynamics Models

@article{Peng2010TheCO,
  title={The Calculation of Volatility in Real Option Investment Decision-Making Model Using System Dynamics Models},
  author={Ruohong Peng and Nan Zheng and Hui Chen},
  journal={2010 International Conference on Management and Service Science},
  year={2010},
  pages={1-4}
}
Real options method has been increasingly used in value assessment and decision-making of investment projects. However, the determination of volatility factor in the pricing model is still an open issue. In this paper, system dynamics approach is presented, to set a model on influencing factors and decision-making process of uncertain investment projects… CONTINUE READING