An AHP- TOPSIS based Approach to Portfolio Selection

Emran Karimi Joughi

Abstract


Portfolio decision problems occur in many application areas, well-known examples include financial portfolio problems, in which combinations of several financial assets as stocks are formed and project portfolios, in which different projects to be undertaken by an organization are combined. However, other situations exhibit a similar structure such as plant allocation, combination problems in chemistry, fleet composition in transport or land usage planning. The purpose of this paper is applying a new integrated method to Portfolio Selection. Proposed approach is based on AHP and TOPSIS methods. AHP method is used in determining the weights of the criteria by decision makers and then rankings of Portfolios are determined by TOPSIS method.  At the end a real case is presented to demonstrate the application of proposed method in selecting the Portfolios.


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