On Improvement of Random Preference Portfolio Selection Model Based on Fuzzy Theory
Da Luo · Journal of Southwest China Normal University · 2013
There are so many uncertain factors in the investment portfolio,two important ones of which are profit and risk in security investment.The definition of uncertainty is broad,and it is classified into the following two elements for investment:One is the external environment,and the other is the investors random decisions.This paper deals with the studies on the latter,and we obtain the optimal portfolio by different risk preference of investors.At first,the return and risk are normalized by means of fuzzy theory and investment combination model with a parameter which reflects investorrisk attitude,and obtains the optimum relation by choosing different parameter.