Rethinking the Product Portfolio: A Generalized Investment Model

Timothy M. Devinney and David W. Stewart
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Timothy M. Devinney: Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee 37203
David W. Stewart: Graduate School of Business Administration, University of Southern California, Los Angeles, California 90087

Management Science, 1988, vol. 34, issue 9, 1080-1095

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 (search for similar items in EconPapers)
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:34:y:1988:i:9:p:1080-1095

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