A Hybrid Portfolio Asset Selection Strategy Using Genetic Algorithms (GA)

Using a Genetic Algorithm (GA), an artificial intelligence technique, this study proposes an user-interactive dynamic portfolio selection strategy using a decision support system that will generate an optimal investment mix of assets based on user selection by maximizing the return of the Sharpe Ratio, a measure of the excess return received on a portfolio for the increase of volatility by acquiring a riskier asset. The study generates user-interactive dynamic portfolio strategy through a decision support system that can allow a user to determine the portfolio of assets that they want to consider. A comparative evaluation of the proposed algorithm is carried to measure the quality of the solutions.