Proceedings of the International Conference on Applied Research in Management, Business and Economics
An Investment Decision Making Methodology Based On Type-2 Fuzzy Ahp: A Case Study on Borsa Istanbul (Bist)
Beyza Ahlatcioglu Ozkok, and Hale Gonce Kocken
Evaluation of investment alternatives, taking effective and efficient investment decisions are one of the most important problems of our lives. Portfolio selection problem, can be described as one of the decision-making problem that is to decide which stocks are to be chosen for investment and in what proportions they will be bought. Analytical hierarchy process (AHP) is one of the very well-known multi criteria decision making techniques. Lately many extensions are proposed for AHP in order to handle fuzziness of real life problems by researchers. The most novel extension is to use interval type 2 fuzzy numbers for evaluation matrices in fuzzy AHP. In this study, we worked on portfolio selection problem and used type 2 fuzzy AHP in order to solve the problem and provided a case study on Borsa Istanbul (BIST).
Keywords: portfolio selection problem, investment decision; fuzzy analytical hierarchy process; type-2 fuzzy numbers; fuzzy decision making.