Best Practice Report

The Efficient Frontier: Balancing Risk And Reward In Your IT Portfolio

Craig Symons
 and  one contributors
Jul 31, 2008

Summary

Successful IT investments have a track record of delivering outsized returns. However, they are the minority. The majority of IT investments tend to produce returns that don't justify their high risks. Portfolio management should be used to ensure that risk-adjusted returns are in line with the firm's overall appetite for risk and will generate sufficient returns to compensate for that risk. The efficient frontier represents the optimal portfolio.

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