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Methodological Aspects of Management of Portfolios of Investment Projects for Real Assets of Business Organizations

Author

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  • Dimitar Blagoev

    (UNWE)

  • Radostin Boyadzhiev

    (UNWE)

Abstract

The article aims to present the potential of the classical portfolio theory and the possibilities for its application in the formation and selection of a portfolio of investment projects for investment in real assets. For this purpose, it reviews and summarizes the views of various authors on key concepts, such as investment, project, investment project, etc. The essential conceptual characteristics of portfolio theory are defined in terms of its methodological and mathematical toolbox and subsequently adapted to a conceptual model (methodological framework) for selection of a portfolio of investment projects for real assets and its optimization according to key criteria set by the management. Finally, its draws conclusions regarding the main advantages and the related constraints of the methodological model.

Suggested Citation

  • Dimitar Blagoev & Radostin Boyadzhiev, 2020. "Methodological Aspects of Management of Portfolios of Investment Projects for Real Assets of Business Organizations," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 3 Year 20, pages 71-90.
    • Handle: RePEc:dat:earchi:y:2020:i:3:p:71-90
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    File URL: http://hdl.handle.net/10610/4364
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    References listed on IDEAS

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    5. Merton, Robert C., 1972. "An Analytic Derivation of the Efficient Portfolio Frontier," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 7(4), pages 1851-1872, September.
    6. Graham, John R. & Harvey, Campbell R., 2001. "The theory and practice of corporate finance: evidence from the field," Journal of Financial Economics, Elsevier, vol. 60(2-3), pages 187-243, May.
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    Cited by:

    1. Ivanka Vasenska & Preslav Dimitrov & Blagovesta Koyundzhiyska-Davidkova & Vladislav Krastev & Pavol Durana & Ioulia Poulaki, 2021. "Financial Transactions Using FINTECH during the Covid-19 Crisis in Bulgaria," Risks, MDPI, vol. 9(3), pages 1-28, March.

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    More about this item

    Keywords

    investment; projects; portfolio management; optimization; model;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L0 - Industrial Organization - - General

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