Applying Linguistic Promethee Method in Investment Portfolio Decision-making

The paper proposed a linguistic PROMETHEE approach for making investment portfolio decision. First, we both consider quantitative and qualitative information of each stock and use 2-tuple linguistic value for experts to express their opinions to obtain qualitative information with respect to all evaluation criteria. Then, the transformation method of 2-tuple linguistic variable is applied to aggregate the qualitative information. Thus, a linguistic PROMETHEE method is presented to determine the investment portfolio set and make investment portfolio in accordance with competitive relative position index (CRPI) and investment threshold. Finally, an example is implemented to demonstrate the practicability of the proposed method.