• 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