The thesis describes a stochastic procedure developed for assessing
risk and reducing uncertainty inherent in the investment decision making
process. It is proposed that the two most important profitability
financial ratios in relation to investment decisions are the return on
equity and the return on assets respectively. In order to exploit their
use as criteria for risk measurement and uncertainty reduction, a stochastic
formulation is adopted in which these ratios are expressed in probabilistic
terms. A density function to describe their behaviour is derived; it
is found that density distribution analysis for both ratios indicate
that the Weibull distribution apart from being the most flexible and
adaptable model of all those considered, provides the best overall fit
to the data. It is accordingly used in the latter part of the research
for evaluating industrial sector and company investment risk.
| Identifer | oai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/4228 |
| Date | January 1981 |
| Creators | Urrea, Joaquin Dario |
| Contributors | Kamath, A.R. |
| Publisher | University of Bradford, Not given |
| Source Sets | Bradford Scholars |
| Language | English |
| Detected Language | English |
| Type | Thesis, doctoral, PhD |
| Rights | <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/"><img alt="Creative Commons License" style="border-width:0" src="http://i.creativecommons.org/l/by-nc-nd/3.0/88x31.png" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="http://creativecommons.org/licenses/by-nc-nd/3.0/">Creative Commons Licence</a>. |
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