Analytic Hierarchy Process Using Trapezoidal Fuzzy Number Based Weights for Portfolio Selection.

Akbaş S., Erbay Dalkılıç T.

International Journal of Engineering Science Invention, vol.6, no.12, pp.26-31, 2017 (Peer-Reviewed Journal)


The rapidly changing environmental conditions and the increasing complexity of real-life problems, creates need for quickly identification of the most appropriate solution for decision makers to achieve the solution of the problem. In such cases, Multi-Criteria Decision Making (MCDM) methods are used to make the right choice. The portfolio selection process that includes multiple criteria and alternatives is one of the areas where the MCDM methods are used. The aim of this study is to suggest a portfolio selection model based on the analytic hierarchy process that will help about making the right investment to savers who are planning to invest in the face of uncertainty in the financial markets. As an alternative to the Enea and Piazza's portfolio selection model, which uses the triangular fuzzy numbers for criteria weighting, a new model that uses the symmetric trapezoidal fuzzy numbers for the same aim was proposed. In order to investigate the effectiveness of the model, the results obtained from the existing methods and the results obtained from the proposed model were compared by based on the data in the literature.