Fuzzy Mcdm Approach of Stocks Evaluation and Portfolio Selection

Portfolio selection problems include vague parameters and fuzzy set is a powerful tool to cope with uncertainty caused by both the financial markets and the behavior of the investors’ decisions. This paper presents a fuzzy multi-criteria decision making (MCDM) approach to evaluate nine stocks taken from ISE. The Fuzzy Analytic Hierarchy Process method is applied to determine the weights of criteria according to two investors’ preferences. Performances of alternatives for each criterion are analyzed by using linguistic terms. Finally the portfolio proportions are proposed based on the performances.

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