Title: A multicriteria decision making at portfolio management
Authors: Charouz, Jaroslav
Ramík, Jaroslav
Citation: E+M. Ekonomie a Management = Economics and Management. 2010, č. 2, s. 44-52.
Issue Date: 2010
Publisher: Technická univerzita v Liberci
Document type: článek
URI: http://www.ekonomie-management.cz/download/1331826754_2aa4/04_charouz.pdf
ISSN: 1212-3609 (Print)
2336-5604 (Online)
Keywords: vícekriteriální rozhodování;analytická hierarchie procesu;řízení portfolia
Keywords in different language: multi-criteria decision making;analytic hierarchy process;portfolio management
Abstract in different language: The article deals with an application of the methodology of Analytic Hierarchy process (AHP) and also its newly developed modification named FVK at portfolio management. The method AHP was published already in 1980s whereas FVK is a newly created tool enlarging application possibilities of the AHP. Both methods provide a mathematical support to human decision making process in many areas. They can be supportive for decision making in problems like buying a new car, buying a house, which could be a task for a private person, but this decision making methods could be also useful as a supportive tool for institutions. Just to give a support for solving a problem like se- lecting a new employee, how to lead marketing campaign or how a specific policy would influence voters. In short, both methods are based on defining decision criteria and variants in a logical hie- rarchy. In a process of structuralization of the problem we firstly decompose the decision problem analytically from the upper to the lowest level and then synthesis follows in evaluating the decision variants and eliciting the best one. We apply this multi-criteria methodology to the problem of a portfolio manager decision making when selecting the best possible instrument on the financial market for his use. This decision making method is useful because the portfolio manager is not able to evaluate too many parameters at the same time and objectively rank candidates. On a nu- merical example we demonstrate how convenient application of the above mentioned methods could show clear and objective way for finding a satisfactory solution of this problem.
Rights: © Technická univerzita v Liberci
CC BY-NC 4.0
Appears in Collections:Číslo 2 (2010)
Číslo 2 (2010)

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