Fuzzy Logic Q-measure Model for Managing Financial Investments

In this paper a fuzzy model for supporting the process of financial investing is proposed. The model uses the tools of soft computing as it is based on fuzzy logic and comprises the two major economic concepts: return and risk, combined with one additional characteristic – the q-ratio. In the proposed model there are no assumptions for existence of probability distributions of asset returns. The outcome of the model is a Q-measure which is used for managing an individual asset as well as for portfolio management.