Note—A Note on Cord's Method of Allocating Funds to Investment Projects

Published Online:https://doi.org/10.1287/mnsc.21.12.1466

In this note, we redefine and reinterpret Cord's risk constraint that will be used in selecting the optimal portfolio of investment projects. A sensitivity analysis is carried out via derivation of efficient sets of portfolios for different levels of investment. Also the theoretical foundations of the model are discussed.

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