The PSH Company uses a portfolio approach to manage their research and development (R&D) projects. PSH wants to keep a mix of projects to balance the expected return and risk profiles of their R&D activities. Consider a situation in which PSH projects as characterized in the Excel file PSH Company (S).xlsx. Each project is given an expected rate of return and a risk assessment, which is a value between 1 and 10, where 1 is the least risky and 10 is the most risky. PSH would like to visualize their current R&D projects to keep track of the overall risk and return of their R&D portfolio.

1 Project NM Expected Rate of Return (%) Risk Estimate 12.6 6.8 14.8 6.2 4.2 6.1 6.2 21.4 7.5 3.2 Capital Invested (Millions S) 6.4 45.8 9.2 17.2 34.2 14.8 9.2 in 8.2 0 0 1 Project NM Expected Rate of Return (%) Risk Estimate 12.6 6.8 14.8 6.2 4.2 6.1 6.2 21.4 7.5 3.2 Capital Invested (Millions S) 6.4 45.8 9.2 17.2 34.2 14.8 9.2 in 8.2 0 0