Rethinking the Product Portfolio: A Generalized Investment Model

A generalized financial/product portfolio theory is developed, based on the underlying economic factors determining product profitability and risk, for applications involving the firm's product investment decisions. The model developed provides a means for differentiating market related risk and return from firm specific risk and return for each product. Two hypothetical illustrations of the model are described and the managerial implications are discussed.

• 저널Management Science · 34(9) · 1080–1095
• 토픽Capital Investment and Risk Analysis · Finance
• DOI10.1287/mnsc.34.9.1080
• 저자Timothy M. Devinney, David W. Stewart