Search results for "Alternative investment"
showing 9 items of 9 documents
OFN Capital Budgeting Under Uncertainty and Risk
2017
The aim of this chapter is to propose a new approach to incorporating uncertainty into capital budgeting. The chapter presents methods that can be used by an investor when the decision maker wants to be able to make an investment decision where there are alternative investment projects. This kind of problem is undertaken under the conditions of uncertainty and risk using Ordered Fuzzy Numbers (OFN). The starting point is the concept of Ordered Fuzzy Numbers. The chapter illustrates the implementation of the proposed approach with an example where two alternative investment projects are analyzed. The authors present the capital budgeting problem using a numerical example. The described metho…
Choice between alternative investments in agriculture: The role of organic farming to avoid the abandonment of rural areas
2015
Abstract Sicily has a long tradition in citrus fruit cultivation that, with vineyard and olive tree, represents the main Mediterranean tree crops. Since many Sicilian farmers in recent years have decided to abandon conventional lemon orchards, in this paper we have evaluated the financial sustainability of organic lemon production by comparing it with the conventional one. Financial analysis has been carried out in a case study on the northwestern coast of Sicily, considering a 50-year economic life of an orchard. The results, per hectare of area, showed a clear advantage of organic lemon orchard. This was due to fewer labor requirements and to greater market appreciation for organic produc…
Business Angel Investments: Risks and Opportunities
2015
Abstract For the last few years the need of improving the access to finance for the companies, especially SME's (small and middle enterprises), has been on the agenda in European Union. As long as the traditional financing such as bank loans became more complex to attract, the development of alternative investment, like seed and start-up capital investments, crowd funding, venture capital and Business angels, became a bold topic. Moreover, there is an opinion that development of alternative investment might be seen as a ground for boosting economic activity and entrepreneurship development. Even though a lot of various studies have been done on the evaluation and description of alternative …
Alternative Investment Fund Managers Directive and its Impact on Malta’s Financial Service Industry
2016
The introduction of the Directive on Alternative Investment Fund Managers (AIFM Directive 2011/61/EU) in 2013 means a radical transformation of the EU regulatory landscape for the whole alternative investment fund industry. Taking into account the growing meaning of the alternative investment fund industry in Europe, the aim of the paper is to assess the impact the Directive on Alternative Investment Fund Managers (AIFMD) will have on the Alternative Investment Fund Managers (AIFMs) managing Alternative Investment Funds (AIFs) in the EU. The research is based on the case of Malta, which is a quickly growing financial centre. The main findings are based on an analysis of questionnaire respon…
ECONOMIC EVALUATION OF AQUACULTURE INVESTMENTS UNDER CONDITIONS OF RISK AND UNCERTAINTY IN THE MEDITERRANEAN SEA
2014
This study aims to analyze, from a technical and ec onomic point of view, the choice between alternative investments in aquaculture under condit ions of risk and uncertainty. In particular, a comparative analysis has been conducted between an inshore and an offshore farm producing European sea bass in the Mediterranean Sea. The app lied model refers to the theory of subjective probability, assigning a different probability to e xpected incomes during the investment period. Resul ts show an economic convenience of inshore with respect to offshore farming.
Opportunity costs and efficiency of investments in mega sport events
2009
Economic analyses of mega sport events usually focus on the positive effects and legacies while ignoring opportunity costs and the efficiency of using scarce resources. Event opponents argue that decisions to invest public resources should also consider alternative uses of the money. This paper aims to clarify some of the issues surrounding the opportunity costs of mega sport events. By using the measure ‘efficiency’ (output/input) of alternative investments it will become clear that the decision to stage a mega sport event cannot be taken in isolation and that there are many factors that need to be considered. The argument put forward is based on a stakeholder’s perspective and a spatial d…
Overcoming managers’ myopic decisions in a waste collection company
2019
Purpose The purpose of this paper is to show how the changing interrelationships between fleet management, human resources and outsourcer capacity areas are likely to counterbalance managerial policies, thereby generating a performance decay. The use of system dynamics modelling in a waste collection company offered an effective contribution to support decision makers to overcoming myopic decisions. Design/methodology/approach Literature review and a case study analysis (including interviews with company actors and data gathering) offered the basis to build a system dynamics model. The model built was then used to run simulations sessions to assess alternative investments decisions. Findin…
Lending Crowdfunding : Principles and Market Development
2020
AbstractCrowdlending has emerged as the leading form of crowdfunding in terms of scope and scale. For lenders, it offers new investment opportunities, often offering better returns than some alternative investment channels, as well as opening to incorporate new small-scale investors that have not enjoyed such opportunities before. For borrowers, it offers new channels to access credit, often either offered at better terms or by including groups that have previously been marginalized and underserved by traditional credit service providers. In the current chapter we present the brief history of crowdlending, its diversity of models, the current state or the industry, as well as the underlying…
Optimal portfolio allocation with real assets : a Finnish perspective
2017
Alternative market assets, i.e. those which are not part of the ''traditional'' financial assets, have become increasingly popular globally during the last decade. The purpose of this study is to examine the potential benefits of including real investment assets, specifically timberland and real estate holdings, for a investor investing to either domestic or international markets. Specifically the questions to be asked are: Do Finnish real investment assets offer diversification benefits in respect of increased risk-adjusted returns? What are the optimal asset allocations? The analyzed time-series for alternative investments represent quarterly total returns of average Finnish timberland an…