Approaches for evaluating a portfolio of R & D projects with a budget
@inproceedings{Costa2012ApproachesFE,
title={Approaches for evaluating a portfolio of R & D projects with a budget},
author={Anabela Costa and J. P. Paix{\~a}o},
year={2012}
}The Real Options approach has proved to be a suitable methodology for capturing the flexibility in the investment decision process. This is very useful for the financial evaluation of R&D projects where there are several possible decisions concerning to the investment – delaying, improving or abandoning. Since the risk of an R&D project is usually due to singular characteristics of the project and is uncorrelated with the financial markets, the contingent claims analysis may be not adequate to… CONTINUE READING
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