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Effects of multiple criteria on portfolio optimization

International Journal of Information Technology and Decision Making, ISSN: 0219-6220, Vol: 13, Issue: 1, Page: 77-99
2014
  • 13
    Citations
  • 0
    Usage
  • 15
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    13
    • Citation Indexes
      13
  • Captures
    15

Article Description

We study the effects of considering different criteria simultaneously on portfolio optimization. Using a single-period optimization setting, we use various combinations of expected return, variance, liquidity and Conditional Value at Risk criteria. With stocks from Borsa Istanbul, we make computational studies to show the effects of these criteria on objective and decision spaces. We also consider cardinality and weight constraints and study their effects on the results. In general, we observe that considering alternative criteria results in enlarged regions in the efficient frontier that may be of interest to the decision maker. We discuss the results of our experiments and provide insights. © 2014 World Scientific Publishing Company.

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