Effectiveness, reliability and subject risk - Shaping drivers for the set of possibilities and utility function when investment decision is made under uncertainty

The concepts of effectiveness, riskness and reliability are three cornerstones which together with utility of investor form the base for decisions perception and management logics in order to match the possibilities of investment space with investor’s objectives. At this time risk, which is “a chance or possibility of danger, loss, injury, or other adverse consequences” (The Oxford Modern English Dictionary) or, specifically, in the area of investment management – “the chance that an investment (as a stock or commodity) will lose value” (Webster Dictionary) is the function of risksness of selected assets altogether with subject possibilities and skill to deal with the riskness. The paper will reveal a consistent way towards investment possibilities set description, when investment assets’ possibilities are under uncertainty, what is understood in this paper as under stochasticity. As a possible mean of the above mentioned match the authors propose portfolio adequate for investment stochastic nature, presenting its formation and application principles. This model has broad application possibilities investing in exchange and capital markets, as well as forming sustainable investment strategies.