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ZJUS-A
Journal of Zhejiang University-SCIENCE A (Applied Physics & Engineering)  2005, Vol. 6 Issue ( 4): 14-    DOI: 10.1631/jzus.2005.A0334
    
Research of relationship between uncertainty and investment
MENG Li, WANG Ding-wei
School of Information Science & Engineering, Northeastern University, Shenyang 1100006, China; School of Management, Shenyang University of Technology, Shenyang 110023, China
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Abstract  This study focuses on revealing the relationship between uncertainty and investment probability through real option model involving investment critical trigger and project earning. Use of Matlab software on the experimental results showing that project earning volatility influences investment probability, led the authors to conclude that this notion is not always correct, as increasing uncertainty should have an inhibiting effect on investment, and that in certain situation, increasing uncertainty actually increases the investment probability and so, should have positive impact on investment.

Key words： Investment      Uncertainty      Real option      Stochastic process Information Management     
Received: 18 November 2003     
CLC:  F235.2  
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MENG Li
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MENG Li, WANG Ding-wei. Research of relationship between uncertainty and investment. Journal of Zhejiang University-SCIENCE A (Applied Physics & Engineering), 2005, 6( 4): 14-.

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http://www.zjujournals.com/xueshu/zjus-a/10.1631/jzus.2005.A0334     OR     http://www.zjujournals.com/xueshu/zjus-a/Y2005/V6/I 4/14

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