DocumentCode :
2855229
Title :
Application of real options in project portfolio selection
Author :
Wang, Chengchao ; Shou, Yongyi
Author_Institution :
Sch. of Manage., Zhejiang Univ., Hangzhou, China
fYear :
2011
fDate :
6-9 Dec. 2011
Firstpage :
848
Lastpage :
853
Abstract :
The real options theory has received widespread attention for its response to environmental uncertainty and managerial flexibility. The paper attempts to apply real options theory in project portfolio selection so as to maximize the option value of the selected project portfolio. On the basis of analyzing major types of real options and their evaluation, it is found that real options are suitable for project selection, and the compound options are more in line with real-world project portfolios.
Keywords :
combinatorial mathematics; investment; optimisation; stock markets; compound options; project portfolio selection; real options theory; Compounds; Industries; Investments; Portfolios; Pricing; Production; Switches; Real options; project portfolio; selection;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference on
Conference_Location :
Singapore
ISSN :
2157-3611
Print_ISBN :
978-1-4577-0740-7
Electronic_ISBN :
2157-3611
Type :
conf
DOI :
10.1109/IEEM.2011.6118036
Filename :
6118036
Link To Document :
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