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Methods of Choosing an Optimal Portfolio of Projects

Author

Listed:
  • Anatoliy Yakovlev

    (National Technical University Kharkiv)

  • Maksym Chernenko

Abstract

This paper presents an analysis of existing methods for a portfolio of project optimization. The necessity for their improvement is shown. It is suggested to assess the portfolio of projects on the basis of the amount in the difference between the results and costs during development and implementation of selected projects and the losses caused by non-implementation or delayed implementation of projects that were not included in the portfolio. Consideration of capital and current costs components are required for the portfolio of projects efficiency calculation. An optimization model for a portfolio of projects is developed. Consideration of social and economic factors that contribute the integral assessment of the portfolio of project and methods for their calculation are proposed.

Suggested Citation

  • Anatoliy Yakovlev & Maksym Chernenko, 2016. "Methods of Choosing an Optimal Portfolio of Projects," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 12(02), pages 33-38.
  • Handle: RePEc:mic:tmpjrn:v:12:y:2016:i:02:p:33-38
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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2016/02/TMP_2016_02_04.pdf
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    More about this item

    Keywords

    project; portfolio; economic evaluation; reallocation of resources; interim results; comprehensive studies; probabilistic factors;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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