Integration of Fuzzy MCDM Methods for Portfolio Selection

Mahnaz Babaei, Masoud Maleki, Majid Moradi


In industry, managers must select portfolios of projects for funding, in order to advance the corporate goals.  There are generally many more projects than funding can support.  Ideally, managers aim to select an optimal subset of projects to meet the company’s goals while complying with budgetary restrictions. At the same time, they seek to control the overall risk of a portfolio of projects and ensure that cash flow or other such performance objectives are maximized. The purpose of this paper is applying a new integrated method for Portfolio Selection. Proposed approach is based on Fuzzy Prioritization Method and TOPSIS. Fuzzy Prioritization Method is used in determining the weights of the criteria by decision makers and then ranking of Portfolios are determined by TOPSIS method. In this paper a numerical example demonstrates the application of the proposed method.

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