Pennings, Enrico; van Bekkum, van Bekkum, S.; Smit, … - Erasmus Research Institute of Management (ERIM), … - 2009
This paper shows that the conditionality of investment decisions in R&D has a critical impact on portfolio risk, and … conditional R&D projects with real option characteristics has a fundamentally different risk than a portfolio of unconditional … projects. When conditional R&D projects are negatively correlated, diversification only slightly reduces portfolio risk. When …