Rethinking the Product Portfolio: A Generalized Investment Model
Timothy M. Devinney, David W. Stewart
Management Science · 1988 · Volume 34 · Issue 9
Abstract
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.
Keywords
product risk, product portfolio theory, strategic decision making
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