Application of Interval-PROMETHEE Method for Decision Making in Investing
نویسندگان
چکیده
This paper introduces the interval-PROMETHEE method to the investment decision making of value investing. Five performance criteria are used for measuring the growth potential of firms and are represented by interval numbers based on the real financial data. The interval-PROMETHEE method is applied to rank the 20 randomly selected stocks in Shanghai Stock Exchange. The portfolio with the top 5 stocks was proven to have higher return than the top 10 stocks within the 17-month investment period. The empirical study showed the effectiveness of the interval-PROMETHEE method in the decision making process of value investing.
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