Multi-attribute Decision Making (MADM) Method for Optimal Investment Portfolio Selection Using Z-Number Valued Information

The conventional approach to selecting investment portfolios has traditionally relied upon the classical risk-return paradigm. Nevertheless, the determination of an optimal portfolio is influenced by a range of factors that extend beyond this framework. By integrating classical methodologies with Multiattribute Decision Making (MADM) techniques, a more comprehensive analysis of the decision landscape can be achieved. However, ensuring the precision and reliability of the information used in calculations necessitates the incorporation of the Z-number concept. In this context, the paper introduces a comprehensive approach to portfolio selection. The empirical data utilized in this study were sourced from the Yahoo Finance web platform, reflecting the most up-to-date market conditions. The simulation process is conducted using the Z-Application Package, a cutting-edge tool designed to handle Z-number analysis efficiently. The results obtained from the empirical analysis strongly support the efficacy of the proposed methodology. By bridging the gap between classical portfolio theory and modern decision-making techniques, this study contributes to a more nuanced understanding of portfolio optimization. The incorporation of Z-numbers enhances the robustness of the analysis, particularly in the face of market uncertainties and fluctuations. Overall, the findings underscore the value of adopting a comprehensive approach that transcends traditional paradigms and integrates advanced methodologies to address the complexities of portfolio selection in today's dynamic financial landscape.