engleski

Using Grey Incidence Analysis Approach in Portfolio Selection

Due to the development of financial markets, products, financial and mathematical models, portfolio selection today represents a comprehensive set of activities. Investors take into consideration many different factors, such as the market factors ; return distribution characteristics and financial statements information. This research applies a Grey Relational Analysis (GRA) approach of evaluating the performance on a sample of stocks by using those different factors into consideration. The results based upon a sample of 55 stocks for the trading year 2017 on Croatian capital market show that using GRA approach in portfolio selection provides a useful guidance for investors when making investment decisions and better portfolio results in terms of risk and return are reachable compared to an equally weighted portfolio benchmark.

Portfolio Selection ; Grey Relational Analysis ; Stock Market, Financial Ratios ; Market Data ; Performance Measurement

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