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A multicriteria hierarchical approach for portfolio selection in a stock exchange
Bernal, María
Anselmo Álvarez, Pavel
Muñoz, Manuel
León Castro, Ernesto
Gastelum Chavira, Diego Alonso
IOS Press
2021
The objective of the paper is to present a multiple criteria hierarchical process (MCHP) approach for portfolio selection in a stock exchange. One of the problems that investors usually face is which stock should be included in the portfolio. This paper helps investors answer that question, and the paper presents an MCHP approach using different criteria based on financial ratios that the decision maker (in this case, the investor) will give different weights to make a portfolio based on her preferences; different importance is given to each criterion. An example using the Mexican Stock Exchange is presented.
Portfolio selection
ELECTRE III method
Multiple criteria hierarchical process
Financial ratios
Stock exchange
Computación y ciencias de la información