Managing tracking error on an ex ante basis requires an ability to assess the possible effects of trades on a fund’s performance relative to its benchmark. Given a trading strategy, its potential for reducing tracking error must be balanced against trading costs and return expectations. This chapter presents several simple diagnostic tools to help fund managers evaluate alternative trading stra...

The present paper aimed at studying the current models of credit portfolio management. There are currently three types of models which consider the risk of credit portfolio: the structural models (Moody's KMV model, and Credit- Metrics model), the intensity models (the actuarial models) and the econometric models (the Macro-factors model). The development of these three types of models is based...

Project Portfolio Management (PPM) is an essential component of an organisation’s strategic procedures, which requires attention of several factors to envisage a range of long-term outcomes to support strategic project portfolio decisions. To evaluate overall efficiency at the portfolio level, it is essential to identify the functionality of specific projects as well as to aggregate those findi...

This paper will investigate the strategic design decision-making of an in-house designer in a company with a large product portfolio, with respect to how designers plan for future visual alterations of the product. In-house designers have to think strategically about the creation of recognition and differentiation through design because they influence the company's overall strategies. Therefore...

Although most shareholders hold diversi…ed portfolios, the corporate …nance literature postulates that shareholders maximise …rm value, while managers sometimes do not. We argue to the contrary that undiversi…ed managers may care more about …rm-level risk and return than about the value of their shareholders’diversi…ed portfolio. These two objectives may di¤er in presence of product-market inte...

In this paper, a methodology is presented to determine the optimum number of product platforms to maximize overall product family profit with simplifying assumptions. This methodology is attempting to aid various manufacturing industries who are seeking ways to reduce product family manufacturing costs and development times through implementation of platform strategies. The methodology is based...

Lacking efficiency and transparency regarding cross-company collaboration in the field of innovation management often leads to cost intensive and unsuccessful products and services. This is due to the fact that traditional Innovation Management approaches fail in terms of coping with emerging requirements in Open Innovation projects, e.g. the vertical and horizontal integration of strategic par...

We study the portfolio selection problem in a new product development setting with many projects in parallel, each lasting several stages, in the face of uncertainty. Each stage of the process performs an experiment on a selected number of projects in the stage, depending on the amount of (scarce) budget allocated to the stage. Projects become differentiated through their experimental results, ...