Risk return approach to product portfolio strategy

Richard N. Cardozo, Jerry Wind

Research output: Contribution to journalArticlepeer-review

20 Scopus citations


This article describes how a risk-return portfolio analysis, as originally developed in economics and finance, can be applied to product-line decisions. This approach uses direct estimates of return, and explicitly considers risk, or variation in return; most of the product portfolio models in use today forecast return by correlation, and lack explicit treatment of risk. The approach provides guidance for new product development activities as well as for allocating resources among a corporation's existing product lines. The article explains how organizations can apply this approach to their own product portfolio decisions, and includes a detailed example of how one company used this model.

Original languageEnglish (US)
Pages (from-to)77-85
Number of pages9
JournalLong Range Planning
Issue number2
StatePublished - Apr 1985


Dive into the research topics of 'Risk return approach to product portfolio strategy'. Together they form a unique fingerprint.

Cite this