Question: Companies typically are presented with many different projects for solving problems and improving performance. There are far more ideas for systems projects than there are

Companies typically are presented with many different projects for solving problems and improving performance. There are far more ideas for systems projects than there are resources and so

,

firms will need to select the projects that promise the greatest benefit to the business.

What is a portfolio analysis?

ANSWER

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A portfolio analysis is used to evaluate information technology investments.

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A portfolio analysis will best help management determine the optimal mix of investment risk and reward for the firm, balancing riskier high

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reward projects with safer lower

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reward ones.

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A portfolio analysis is useful for selecting projects where many criteria must be considered.

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A portfolio analysis portrays a project as a network diagram consisting of numbered nodes representing project tasks.

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