preprints.org > computer science and mathematics > logic > doi: 10.20944/preprints202307.1014.v1

Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Version 1 : Received: 14 July 2023 / Approved: 14 July 2023 / Online: 17 July 2023 (02:40:52 CEST)

Investment management is a common process and practice used for achieving a desirable investment goal or outcome. Investment assessment should be carried out at various stages of project realization in accordance with capital investment volume. Investment risk management implies the effective control of all procedures and monitoring of risks in all phases of the investment project. Because of the reason that a single indicator in probability calculation of achieving optimal return from the investment does not exist, performing sufficiently reliable estimates of the quality of investments becomes a tedious task. There are many indicators, factors, and criteria required for consideration to reach the effective solution of the investment problem. Unfortunately, the systematic variation of economic situations in the marketplace stipulates the continuous and frequent changes of investment conditions and environment in which the investor should act and operate. Hence, the rules required for providing a reasonable quality of investment projects can be based only on investor’s management strategy and rely on investor’s intuition and practice. The importance of classification in investment management and decision making process is undeniable. The objects to be classified are described using assessments in accordance with various criteria which can be both quantitative and qualitative. With a competent formulation of the investment process, both methods are used in parallel. There exist various decision making approaches for the investment management, and simple additive weighting (SAW) is one of the well-known multi-criteria decision making (MCDM) methods aiming to provide an optimal decision for decision maker when solving various real-life problems, and particularly, investment problem. In this paper, fuzzy simple additive weighting (FSAW) method in group decision making is applied to undertake the capital investment expenditure for purchasing cars with the purpose of renting them to the public. The development of existing FSAW method is accomplished and this process involves the sensibility of outcomes to changes in the rate of fuzziness represented with decisions taken. Eventually, the degree of fuzziness involved in an analysis that directly attempts to model the immanent vagueness and imperfectness in particular precedency judgments made, is determined. A numerical example illustrates the importance and effectiveness of the suggested approach with the aim of ranking alternatives and hence, determining the most preferred alternative in MCDM problem.

investment management; multi-criteria decision making (MCDM); fuzzy number; fuzzy simple additive weighting; fuzzy group decision making

Computer Science and Mathematics, Logic

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