Analysis of strategic decision-making of company's project investment based on portfolio theory

Aiming at the problem of risk evaluation and decision-making of corporation's project investment programming scenario, the paper sets up project yield evaluation model based on projects' investment incomes. The conception of strategic environment is introduced, and its probability distributing is used to describe the environment's uncertainty inside and outside of corporation. Hence, taking integration yield even value m and variation sigma₀ ² which weighs risk degree as evaluation index of project investment programming scenario; optimum risk decision-making model is established using portfolio theory. At last, the paper illuminates the application approach and validity of the model through a concrete example.