Resumen de An analysis of risk treatment in the field of finance

Fernando Gómez-Bezares Pascual, Fernando R. Gómez-Bezares Revuelta

• This paper studies the way to introduce risk into financial analysis. It suggests and analyzes metrics to improve the classic methods, like the Sharpe and Treynor ratios or the Net Present Value.

  In particular, the paper suggests a linear penalization method developed by the authors, applying it to performance indexes and capital budgeting, and considering both total and systematic risk. The method shows obvious advantages in comparison with traditional methods.