A New Model for Solving Portfolio Selections Based on Fuzzy Goals of Investors

Since the 1960s, lots of scholars had begun to research in the portfolio selections based on the theory of mean-variance of Markowitz portfolio and relevant methods. All of these studies are under certainly of the assumption term, and then the researchers can get efficient set of portfolio selection. However, alone with the finance environment increasing of complexity, it is becoming more complex to build a model of portfolio selection, which requires further inquiries on its part based on the fact. In this paper, a new model of portfolio selection is proposed, and it is based on the fuzzy goals between risk and return which is made up of subjective measure factors. These factors can represent the investors’ subjective thinking, and they are given before building the model of portfolio selection. Therefore, this goal will not change with the change of the portfolio strategy. The theory and empirical studies show that the new model is close to the practical finance environment and it simplify the process of solving and be valuable. Key-Words: Markowitz Portfolio Selection Model, fuzzy goals, subjective measure factors, subjective risk, subjective return