TY - JOUR A2 - Lu, Chien-Yu AU - Pamplona, Edson de Oliveira AU - Brandão, Marina Carvalho AU - Montevechi, José Arnaldo Barra AU - de Pinho, Alexandre Ferreira AU - Albuquerque, Valério Oscar AU - Rotela Junior, Paulo PY - 2013 DA - 2013/12/02 TI - Evaluating Energy Sector Investments: Calculating Volatility SP - 128309 VL - 2013 AB - A major task in assessing risks of investment projects is defining the approach to calculating the project’s volatility. Looking at assorted estimation techniques, this paper calculates their volatilities. The techniques originate from authors in the area and involve project-specific variables of uncertainty. These techniques are applied to a case of electricity distribution through real options. Results are then compared. The difference between the calculated volatilities was low, leaving, in the case of the project evaluated here, the decision unchanged. The paper’s contribution consists of providing a detailed presentation of calculating volatility by the methods cited and by comparing the results obtained by its application. SN - 1024-123X UR - https://doi.org/10.1155/2013/128309 DO - 10.1155/2013/128309 JF - Mathematical Problems in Engineering PB - Hindawi Publishing Corporation KW - ER -