The possibilities and consequences of investment decisions by stepwise optimization

The paper deals with the application of stochastic optimization principles for investment decision making. authors present management system based on an adequate portfolio model. For optimal construction and stock selection, method stochastically informative expertise ranging is used. Investment portfolios in equity currency markets are formed considering investor risk tolerance preference level, as well individual utility function. constructed according to three criteria: return, risk, reliability. Germany, USA, China, foreign exchange markets, analysed. results reveal efficient possibilities mentioned allowing reach return substantially exceeding market index return. Along that, innovative clustering methodology assets proposed. obtained great value institutional investors a suitable means form strategies financial markets.