Bekkum, Sjoerd van; Pennings, Enrico; Smit, Han - Tinbergen Institute - 2007
portfolio risk, and changes diversification arguments when a portfolio is constructed. When R&D projects exhibit option …. Real option theory argues that research projects with conditional phases have option-like risk and return properties, and … are different from unconditional projects. We show that although the risk of a portfolio always depends on the correlation …