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
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