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Fuzzy Logic in Portfolio Selection: Selected Applications

Fuzzy Logic in Portfolio Selection: Selected Applications
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Author(s): Tihana Škrinjarić (University of Zagreb, Croatia)
Copyright: 2021
Pages: 18
Source title: Handbook of Research on Applied AI for International Business and Marketing Applications
Source Author(s)/Editor(s): Bryan Christiansen (Global Training Group, Ltd, UK)and Tihana Škrinjarić (University of Zagreb, Croatia)
DOI: 10.4018/978-1-7998-5077-9.ch010

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Abstract

This chapter deals with possibilities of using fuzzy logic in the process of selecting stocks for the portfolio. Often investors observe specific cognitive uncertainty problems within the portfolio selection. This is where fuzzy logic can help with the final decision. After the description of the selected fuzzy logic concepts and comparison with other similar approaches, an empirical section provides detailed insights into the applications of such methodology. The analysis utilizes weekly data for the period January 2018 – April 2019 for 20 selected stocks in order to exhibit the usefulness of the observed approach in the portfolio selection.

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