N project portfolio
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(1) The document discusses financial approaches to managing portfolios with multiple projects. (2) It presents formulas to calculate the expected return, expected mean, and expected variance of a portfolio containing N projects. (3) The formulas start with a basic 2-project portfolio and expand the approach to calculate statistics for a portfolio with any number of projects N.
N project portfolio
- 1. N PROJECTS PORTFOLIO A FINANCIAL APPROACH ENG. PASSERA EMANUELE PMP, PRINCE2 PRACTITIONER WWW.PMCRUMBS.COM
- 2. ๐ ๐ ๐ = ๐ฅ1 ๐ 1 ๐ + ๐ฅ2 ๐ 2 ๐ ๐ ๐ = ๐ฅ1 ๐1 + ๐ฅ2 ๐2 ๐ ๐ 2= ๐ฅ1 2 ๐1 2 + ๐ฅ2 2 ๐2 2 + 2๐ฅ1 ๐ฅ2 ๐12 2 (a) (b) (c) 2 PROJECT PORTFOLIO
- 3. ๐ ๐ ๐ = ๐ฅ1 ๐ 1 ๐ + ๐ฅ2 ๐ 2 ๐ + โฏ + ๐ฅ ๐ ๐ ๐ ๐ ๐ ๐ = ๐ฅ1 ๐1 + ๐ฅ2 ๐2 + โฏ + ๐ฅ ๐ ๐ ๐ ๐ ๐ 2= ๐ฅ1 2 ๐1 2 + ๐ฅ2 2 ๐2 2 + โฏ + ๐ฅ ๐ 2 ๐ ๐ 2 + ๐ฅ1 ๐ฅ2 ๐12 2 + โฏ + ๐ฅ1 ๐ฅ ๐ ๐1๐ 2 + โฏ +๐ฅ ๐ ๐ฅ1 ๐ ๐1 2 + โฏ + ๐ฅ ๐ ๐ฅ ๐โ1 ๐ ๐๐โ1 2 (a1) (b1) N PROJECT PORTFOLIO (c1)
- 4. ๐ ๐ ๐ = ๐=1 ๐ ๐ฅ๐ ๐ ๐ ๐ ๐ ๐ = ๐=1 ๐ ๐ฅ๐ ๐๐ (a2) (b2) N PROJECT PORTFOLIO (c2)๐ ๐ 2 = ๐=1 ๐ ๐ฅ๐ 2 ๐๐ 2 + 2 ๐=1 ๐ ๐ฅ๐ ๐=๐+1 ๐ ๐ฅ๐ ๐๐๐ 2
- 5. ๐ ๐ ๐ = ๐=1 ๐ ๐ฅ๐ ๐ ๐ ๐ ๐ ๐ = ๐=1 ๐ ๐ฅ๐ ๐๐ (a3) (b3) N PROJECT PORTFOLIO (c3)๐ ๐ 2 = ๐ฅ1 โฏ ๐ฅ ๐ ๐1 2 โฏ ๐1๐ 2 โฎ โฑ โฎ ๐ ๐1 2 โฏ ๐ ๐ 2 ๐ฅ1 โฎ ๐ฅ ๐