Abstract
Multiple criteria decision making is a mathematical tool for dealing with complex problems like best or optimal selection from various choices. Fuzzy set theory provides a soft computing framework for precise and rigorous study of vague conceptual environment. In this paper, a new hybrid multi-criteria decision-making method consists of group fuzzy COPRAS, and fuzzy BCM is proposed. The aim of the proposed method is to enhance the practical approach of soft computing in selection of stocks for portfolio construction and better return. This method has been executed in two phases. First, using a novel base-criterion method with triangular fuzzy number, the relative optimal weights of specified criteria are extracted from group decision-making process. Then, an approach based on the combination of fuzzy set theory and the complex proportional assessment (COPRAS) is applied to rank the alternatives in uncertain and ambiguous environment. A practical implementation of proposed method in stock selection is another realistic approach of our study. Portfolio is constructed by using the ranking obtained by proposed model. The weight allocation of the stocks is calculated using the ranked assets algorithm. Execution of the proposed model is found to be dominant when compared with the previous studies. The result ensures that the portfolio is capable of giving better returns based on the proposed ranking.
Similar content being viewed by others
References
Alinezhad A, Khalili Z (2019) New methods and applications in multi-attribute decision making (MADM). In: International series in operational research and management science
Benayoun R, Roy B, Sussman N (1996) Manual de, du programme ELECTRE. Note Synth Form 25:79
Carlsson C, Fuller R (2001) On possibilistic mean value and variance of fuzzy numbers. Fuzzy Sets Syst 122(2):315–326
Chen CT, Hung WZ (2009) A New Decision-Making Method for Stock portfolio Selection Based on Computing with Linguistic Assessment. J Appl Math Decis Sci 2009:1–20
Chen N, Xu Z (2015) Hesitant fuzzy ELECTRE II approach: a new way to handle multi-criteria decision-making problems. Inf Sci 292:175–197
Degdeviren M, Yavuz S, Kilinc N (2009) Weapon selection using the AHP and TOPSIS methods under fuzzy environment. Expert Syst Appl 36:8143–8151
Duckstein L, Opricovic S (1980) Multiobjective optimization in river basin development. Water Resour Res 16(1):14–20
Guo S, Zhao H (2015) Optimal site selection of electric vehicle charging station by using fuzzy TOPSIS based on sustainability perspective. Appl Energy 158:390–402
Guo S, Zhao H (2017) Fuzzy best-worst multi-criteria decision-making method and its applications. Knowl-Based Syst 121:23–31
Haseli G, Sheikh R, Sana SS (2019) Base-criteria on multi-criteria decision-making method and its applications. Int J Manag Sci Eng Manag 15(2):79–88
Haseli G, Sheikh R, Sana SS (2020) Extension of base-criteria method based on fuzzy set theory. Int J Appl Comput Math 6(2):1–24
Hwang CL, Yoon K (1981) Multiple attribute decision making, methods and applications. Springer, New York
Janis IL, Mann L (1977) Decision making: a psychological analysis of conflict, choice, and commitment. Free Press, New York
Keršuliene V, Zavadskas EK, Turskis Z (2010) Selection of rational dispute resolution method by applying new step-wise weight assessment ratio analysis (SWARA). J Bus Econ Manag 11(2):243–258
Kou G, Lu Y, Peng Y, Shi Y (2012) Evaluation of classification algorithms using MCDM and rank correlation. Int J Inf Technol Decis Making 11(1):197–225
Lu J, Zhang G, Ruan D (2008) Intelligent multi-criteria fuzzy group decision-making for situation assessments. Soft Comput 12(3):289–299
Mahdiraji HA, Arzhagi S, Stauskis G, Zavadskas EK (2018) A hybrid fuzzy BWM-COPRAS method for analysing key factors of sustainable architecture. Sustainability 10(5):1626
Naveenan RV (2019) Risk and return analysis of portfolio management services of Reliance Nippon Asset Management limited (RNAM). Global J Manag Bus 6(1):108–117
Nourianfar K, Montazer GA (2013) A fuzzy MCDM approach based on COPRAS method to solve supplier selection problem. In: 5th conference on information and knowledge technology. IEEE
Plous S (1993) The psychology of judgment and decision making. Mcgraw-Hill Book Company, New York
Rao C, Goh M, Zheng J (2017) Decision mechanism for supplier selection under sustainability. Int J Inf Technol Decis Mak 16(01):87–115
Rezaei J (2015) Best-worst multi-criteria decision-making method. Omega 53:49–57
Rezaei J (2016) Best-worst multi-criteria decision-making method: some properties and a linear model. Omega 64:126–130
Saaty L (1980) The analytical hierarchy process. McGraw-Hill, New York
Saaty TL (2005) Theory and applications of the analytic network process: decision making with benefits, opportunities, costs, and risks. RWS Publications, Pittsburgh
Saaty TL, Ergu D (2015) When is a decision-making method trustworthy? Criteria for evaluating multi-criteria decision-making methods. Int J Inf Technol Decis Making 14(06):1171–1187
Satty TL (1977) A scaling method for priorities in hierarchical structures. J Math Psychol 15(3):234–281
Satty TL (1996) Decision making with dependence and feedback: the analytic network process. RWS Publication, Pittsburgh
Tamiz M, Azmi RA (2016) An investigation of various weighting schemes for portfolios. J Bus Financ Aff 5(3):1–6
Thakur GSM, Bhattacharyya R, Sarkar S (2018) Stock portfolio selection using Dempster–Shafer evidence theory. J King Saud Univ-Comput Inf Sci 30:223–235
Triantaphyllou E (2013) Multi-criteria decision-making methods: a comparative study. Springer, Berlin
Yoon K (1987) A reconciliation among discrete compromise solutions. J Oper Res Soc 38(3):277–286
Zadeh LA (1965) Fuzzy sets. Inf Control 8:338–353
Zavadskas EK, Kaklauskas A, Sarka V (1994) The new method of multi-criteria complex proportional assessment of projects. Technol Econ Dev Econ 1(3):131–139
Zavadskas EK, Kaklauskas A, Kvederytė N (2001) Multivariant design and multiple criteria analysis of building life cycle. Informatica 12(1):169–188
Zeleny M, Cochrane JL (1973) Multiple-criteria decision making. University of South Carolina Press, Columbia
Zhang X, Xu Z (2015) Soft computing based on maximizing consensus and fuzzy TOPSIS approach to interval-valued intuitionistic fuzzy group decision making. Appl Soft Comput 26:42–56
Zhao H, Guo S (2014) Selecting green supplier of thermal power equipment by using a hybrid MCDM method for sustainability. Sustainability 6(1):217–235
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
Monika Narang, Prof. Mahesh C Joshi, and Prof. Arun K Pal declare that they have no conflict of interest.
Ethical approval
This article does not contain any studies with human participants or animals performed by any of the authors.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Narang, M., Joshi, M.C. & Pal, A.K. A hybrid fuzzy COPRAS-base-criterion method for multi-criteria decision making. Soft Comput 25, 8391–8399 (2021). https://doi.org/10.1007/s00500-021-05762-w
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00500-021-05762-w