A Fuzzy Model for Risk Investment Decision
Xiaoyan Zhai · Mohu xitong yu shuxue · 2008
This paper concentrates on the problem for portfolio selection of risk assets from the angle of fuzziness. Based on the research for acquiring uncertain anticipation profit rate, the anticipation profit rates are expressed as fuzzy numbers. And therefore, on every confidence level a fuzzy model for risk investment decision, in which oversell isn’t permitted, is developed by taken the degree deviated from the central point as the measure of risk. Further, the properties for the solution are explored, and the relationship between the expected return and risk is analyzed. Finally, a numeric example is presented to demonstrate the proposed model and a curve for depicting the relationship between the expected return and the risk is obtained. According to this curve, investors can combine their preference and intuitively make decision for their investment.