Narrow framing prevents the CEO from getting the twenty-three projects he would like, and instead getting only three. When broadly considering the twenty-three projects as a portfolio, it is clear that the firm would find the collection of investments highly attractive, but when narrowly considering them one at a time, managers will be reluctant to bear the risk. The firm ends up taking on too little risk. One solution to this problem is to aggregate investments into a pool where they can be considered as a package.
