An Application of Analytical Hierarchy Process to Financial Asset Selection

IF 3 Q2 OPERATIONS RESEARCH & MANAGEMENT SCIENCE

International Journal of Management Science and Engineering Management Pub Date : 2022-10-18 DOI:10.36647/ijsem/09.10.a013

Divya Verma, Appadoo S. S

引用次数: 0

Abstract

Asset selection involves picking up a particular asset within each asset class in such a manner that it would outperform the rest of the assets to maximize the investor’s goal of increasing value while mitigating risk. This paper aims to implement a widely used “multi-criteria decision making (MCDM)” technique known as Analytical Hierarchy Process (AHP) for best asset selection. In AHP, the qualitative problems are described and transformed quantitatively, and then the quantitative analysis is used to find the relationship among various decision criteria. In this study, ethical and suitability criteria are used along with the financial criteria to rank the assets based on individual investors’ preferences. To demonstrate the efficacy of the problem, a hypothetical data set is used for ethical and suitability criteria, and data set of 10 assets of Nifty 50 companies under the National Stock Exchange (NSE) is collected for financial criteria.

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层次分析法在金融资产选择中的应用

资产选择包括在每个资产类别中选择一种特定的资产，以使其表现优于其他资产，从而最大限度地实现投资者的增值目标，同时降低风险。本文旨在实现一种广泛使用的“多准则决策(MCDM)”技术，即分析层次分析法(AHP)，用于最佳资产选择。在层次分析法中，首先对定性问题进行描述和定量转换，然后通过定量分析来发现各个决策准则之间的关系。在本研究中，道德和适用性标准与财务标准一起使用，根据个人投资者的偏好对资产进行排名。为了证明问题的有效性，假设数据集用于道德和适用性标准，并收集国家证券交易所(NSE)下的Nifty 50公司的10个资产的数据集用于财务标准。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Management Science and Engineering Management OPERATIONS RESEARCH & MANAGEMENT SCIENCE-

CiteScore

8.50

自引率

33.30%

发文量

期刊介绍： International Journal of Management Science and Engineering Management (IJMSEM) is a peer-reviewed quarterly journal that provides an international forum for researchers and practitioners of management science and engineering management. The journal focuses on identifying problems in the field, and using innovative management theories and new management methods to provide solutions. IJMSEM is committed to providing a platform for researchers and practitioners of management science and engineering management to share experiences and communicate ideas. Articles published in IJMSEM contain fresh information and approaches. They provide key information that will contribute to new scientific inquiries and improve competency, efficiency, and productivity in the field. IJMSEM focuses on the following: 1. identifying Management Science problems in engineering; 2. using management theory and methods to solve above problems innovatively and effectively; 3. developing new management theory and method to the newly emerged management issues in engineering; IJMSEM prefers papers with practical background, clear problem description, understandable physical and mathematical model, physical model with practical significance and theoretical framework, operable algorithm and successful practical applications. IJMSEM also takes into account management papers of original contributions in one or several aspects of these elements.