Accession Number : ADA469960


Title :   Applying Financial Portfolio Analysis to Government Program Portfolios


Descriptive Note : Master's thesis


Corporate Author : NAVAL POSTGRADUATE SCHOOL MONTEREY CA


Personal Author(s) : Botkin, Bradford L


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a469960.pdf


Report Date : Jun 2007


Pagination or Media Count : 111


Abstract : Government agencies and the Department of Defense in particular, require decision-support tools when making funding decisions regarding portfolios of programs or projects. Government agencies have had some success in applying Project Portfolio Management (PPM) when choosing among potential programs; however, once programs are underway, financial managers routinely face funding optimization decisions similar to those of private-sector stock market portfolio managers. While private-sector portfolio managers rely on stock-price based financial portfolio analysis to aid decision making, government financial managers lack an equivalent stock-price metric for program or project performance. This research suggests the government's Earned Value Management System (EVMS) metrics may be used to generate a suitable proxy with which financial portfolio analysis can be conducted. From this analysis, risk and return trade-offs can be quantified and used when making portfolio decisions. An example using representative EVM data is presented. Recommendations on the possible applicability and limitations of the technique are discussed.


Descriptors :   *FINANCIAL MANAGEMENT , DEPARTMENT OF DEFENSE , UNITED STATES GOVERNMENT , MANAGEMENT PERSONNEL , DECISION MAKING


Subject Categories : Economics and Cost Analysis


Distribution Statement : APPROVED FOR PUBLIC RELEASE