The Evaluation of an Investment Decision - Research Paper Example

 «The Evaluation of an Investment Decision» 1. Introduction The paper being reviewed is mainly about the investment decision making based on quantitative variables and the said variables being considered. Initially, the paper presents the introduction about decision makers evaluating their decisions, and thereon, the paper moves towards the Fuzzy set theory. The second section of the paper presents the introductory theory related to Fuzzy set theory, starting from the point that which cases would include the application of this set of theory, thereon towards the numeric function or logic that is associated with the Fuzzy set theory. The following section of the paper presents the mechanism that is followed in making investment decisions when adapting the Fuzzy set theory; the paper, in a rather simpler language, presents the steps, and describes the same, critical for describing and evaluating investment project selection. Each step is briefly elaborated with numeric example and description associated for the ease of understanding. Proceeding from the theory, a case has also been taken up in the paper that presents illustration on how the theory can be applied to the given scenario. Lastly, a conclusion has been drawn, giving references about the theory and presenting scenarios where the said theory is applicable or otherwise. 2. Methodology When developing a paper, the methodology being used is either quantitative or qualitative in nature. For this paper under consideration, qualitative methodology has been adopted, and within the same, the framework of theoretical background (which can be considered as literature review) is blended with a case study. The advantage of this approach is the fact that the flow associated with the research becomes very smooth and the pace gradually moves up, taking alongside the understanding of the reader; i.e. gradually the paper moves from the basics of investment decision making towards the fuzzy set theory, and its applications, describing its steps and then applying the same to an example. The methodology adopted to develop the functions and their descriptions in the mathematical form is the part that keeps the flow of methodology running fluently. 3. Results The results developed and given in the paper are technical in nature, which are the requirements of such a research, since it is the technical side of investment, whereby derivatives and calculus are involved to a much higher extent then otherwise. However, one point that lacks in the research paper is the conclusion whereby in common language research outcomes are phrased for understanding of a non-technical individual. For instance, if someone not having much knowledge of calculus or derivatives, or a simple MBA person reads the paper, there are great numbers of chances that the paper will not make much of a sense. In the initial and mid section of this research, the author does a good job in explaining these parts in simple and common business language; however, towards the depth of the paper, there are more of technical jargons quoted which would definitely be fruitful in impressing the peers, but really the main aim of a research paper is to essentially make any reader understand what the research is about. 4. Discussion This research paper is technical in nature, and therefore, very different in approach from a general research. Though discussion is mainly about the evaluation of an investment decision, yet it will not be wrong to suggest that a basic finance student would not be able to comprehend most of the material presented in the research. This is definitely a deep finance discussion related to investment banking and corporate financial management at the masters or post-masters level. As previously mentioned, the start of the paper suggests a quick in-sight about investment decision making, mainly pertinent to how uncertainty prevails across the mind-sets and eye-sights of the evaluators of an investment decision. The discussion then moves towards the judgmental assessment of investment where uncertainty is on the higher side, where precise values are difficult to measure, rather estimates or ranges are defined. This is where the author suggests that the need of Fuzzy set theory comes into play. The author then moves on to suggest the usefulness of the theory and about its application. The description of the theory is presented in a very fundamental manner, developing grounds to present the forthcoming example of the application. The objects and assumptions are appropriately defined in very basic terminology. The better aspect about the description is the fact that formulae have been scanned and pasted rather than using the symbolic terms of the word processing software – this makes the formulae appropriately readable. The mechanism and procedure for the investment decision is then briefly stated in terms of stepwise approach. Then the presented numerical example – the case – is briefly described, though a little more insight about the case would have been much more helpful for the readers to analyze the given example. The steps then previously discussed are applied to the given scenario/case. The case is then concluded in a few lines, which does not sound a good idea. The overall conclusion of the paper also sounds on the smaller side, which does not give a good impression about the analytical skills of the author in a critical scenario. This would be included in the recommendation part of this critical analysis. 5. Bibliography/References For the purpose of this research, the author has used a number of references. Almost half of the references being used are journals and the rest are textbooks. A good majority of these texts date back to 1990s or earlier, with just one being of 2002. This is generally not considered a very good symptom in a research, since latest researches are considered authentic as well as value addition. It is a common belief that researches get revised over a period of time, and therefore when researchers develop analytical papers, they often tend to take the latest versions available of textbooks and journals. Subsequently, the arguable fact about the paper comes about the references that have been used. This by no means implies that the references might not be authentic, but using latest versions and editions of text books and other sources ensures that the most recent series of researches have been made use of in the making of a research paper. 6. Decision The decision about the authentication of this paper solely belongs to the understanding of the peers checking this paper. On a general note, the paper has been very well written; as mentioned previously, it has took the pace from the start where it initiates from layman terminologies, builds up the ground and then moves to the higher and difficult concepts that it wishes to explain. It is similar to reading a book whereby basic concepts are explained in the initial phase and then the difficult ones are put up for the ease of understanding of the students. 7. Originality While reviewing the paper, it has been realized at certain instances that text from the books and journals has been analyzed well and the conclusions of these analyses have been phrased within this paper. Subsequently, it will not be correct to suggest that this is an original paper altogether; however, this can definitely be termed as an original secondary research based paper, which has been paced in a manner that makes the topic easier to comprehend in the initial phase. 8. Contribution To The Field The classification of this paper would definitely be amongst the well researched papers that have made understanding of the investment evaluation decisions easier for students and starters – similar to the concept of dummy’s guide series. Whenever subjects are described and topics are searched, students or other researchers look for material that is easier to comprehend and has a manageable flow associated. When it comes to hunting text and/or literature about investment evaluation and decision making, this paper would definitely be fruitful in particular for those who need basic guidelines about the given topic, and need to develop an understanding about the same. 9. Technical Quality Technically, the paper is very sound, with the formulae written in their original shape and form, therefore, making it easier to be visualized and understood. The manner in which the technicalities of this paper have been presented, it becomes easier to understand the notions, symbols and special characters that have been used in the paper. At a certain instance, the various symbolic representations to be used have been separately described, making it easier for the reader to comprehend its meaningfulness. 10. Clarity Of Presentation The paper definitely has a clarify of presentation associated; there are no vague terminologies being used, nor the formulae have been mentioned in word processing format e.g. denoting ‘power’ by ‘^’. This is a definite plus point of this paper i.e. the presentation of the material is very good, the language used is clear, and presence of appropriate headings and structure add to the clarity of the work. However, there lacks certain need in the same context i.e. there really should have been more headings in this paper, which would make it more reader friendly when it comes to a new reader checking out the text. A better/higher number of headings would make it easier for the reader to swap across the text and read the one that is for his most interest, and additionally, the same correction would illustrate in an open manner how well the flow has passed throughout the research paper. 11. Depth Of Research Likewise mentioned previously too, the research paper initiates with the basics of investment evaluative decision making and then utilizes this ground as a platform for the rest of the research to take off towards the difficult side of the subject. A review of the paper illustrates the fact that the paper has been well researched, and the depth of the research shows in particular where the example has been illustrated, examined and applied is a good depiction of the depth of knowledge and research that the author has placed into this paper. 12. Any general comments Including comments/suggestions regarding online supplementary materials This conclusive section is about some minor corrections that are assumed to be critical and should be taken care of prior to its acceptances. These may sound minor changes but within themselves, once done, would definitely enhance the quality of the paper in the bigger picture perspective. The first and foremost milestone for a research paper is to pass the plagiarism check. No matter how original a paper may be, the detector may be able to find certain instances, which would be harmful for the long run career of the researcher. Therefore, it sincerely advised to check the paper for plagiarism prior to its acceptance. Acceptance without a check may lead to consequences not just on the researcher but also towards the acceptance authorities if later some instances of plagiarism are caught. Secondly, it is critical to any research writing for clearly indicate and state the assumptions for any research or experiment explicitly. A better mechanism for applying the same would probably be to explicitly state the assumptions under a heading of ‘assumptions’ in a point form format. This would save the reader time when it comes to hunting for a particular incidence, answering queries or referring to in the later part of the research. This would be similar to a legend in a graph that makes graphs easier to understand and comprehend. A point noticed in this paper is the fact that despite being a technical paper, there has been extensive use of jargons and technical language, which is not so much recommended when it comes to research paper that the author assumes to be of good use for future researchers. Such a move would not just enhance the reader friendliness but also encourage and enlarge the readership of the research paper on the whole, i.e. utilizing simpler language is a definite plus that should be revised in this paper prior to its acceptance. While reading the paper, and in particular the section where the application of the theory has been stated, it was realized that the solution of this application was merely presented in a one liner manner. Generally when it comes to mathematics of statistics and other similar subjects, it is always a recommended mechanism i.e. to have the solution presented in the business language i.e. the way the initial question was presented. This is because of the fact that most of the problems discussed are business cases and business managers would definitely not looking for legends or codes to see what sigma means. Instead, the researcher should conclude with remarks such as notifying the reader about the percentage error rather than using sigma as the language to communicate in the research conclusion. Other than the conclusion of the case application, the conclusion of the overall paper was not as strong as it should have been or as the introduction of the paper is. The conclusion needs to be improved, with substantial knowledge about the subject both in terms of its quality as well as quantity. In addition, such researches should actually end on a note that provides a lead for future researches to take place – consequently, giving the reader a thought provoking idea about how the researcher critically analyzed the given research. Apart from these, for enhancing reader friendliness as well as the target audience, it is better for the researcher to place in more headings into the paper. This makes it easier for the reader to find the relevant text that he needs to have the knowledge of and subsequently, adding headings would ease and foster this process on the reader’s end. Last but not the least, the references that have been used in the paper are as old as those of 1960s, majority being of 70s and 80s; there was just one reference that dates to the year 2002, which is not a good sign for a research that is taking place in the year 2010. The researcher should add more references, and most importantly, more recent references which entails to a minimum of 2005. This is a recommendation because generally, researchers get revised and revisited therefore there are many chances that a journal published in 1980s would have been having newer versions with revised articles and researches several times in three decades. This is a critical aspect and would definitely be raised when the authenticity and acceptability of the research comes into question prior to the acceptance of this research. Overall, though this paper might just be accepted without any further revisions; however, it is still recommended based on the current critical analytics that it should go through some minor corrections that have been described above. This would definitely enhance the form of the paper, and it would become much more of what readers wish to read from it. Read More