Pinto Pm2 Ch03
Pinto Pm2 Ch03
Pinto Pm2 Ch03
Portfolio Management
Chapter 3
Checklist model
Simplified scoring models
Analytic hierarchy process
Profile models
Financial models
Project Beta
Cost 1 2 2
Profit Potential 2 2 4
Development Risk 2 2 4
Time to Market 3 3 9
Total Score 19
X6
Maximum Criteria
Desired Risk X2 selection as
X4 X5
R axes
i X3
s X1
k Efficient Frontier
Rating each
Minimum project on
Return
Desired Return criteria
Payback period
Net present value
Internal rate of return
Options models
Investment
Payback Period
Annual Cash Savings
Time-paced transition
Unpromising projects
Scarce resources