A novel hybrid simplified group BWM and multi-criteria sorting approach for stock portfolio selection

Emamat, Mir Seyed Mohammad Mohsen; Amiri, Maghsoud; Mehregan, Mohammad Reza; Taghavifard, Mohammad Taghi

doi:10.1016/j.eswa.2022.119332

Cited by 19 publications

(5 citation statements)

References 75 publications

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“…Meysam et al's [70] evaluation model was developed for the Iranian petrochemical industry using the fuzzy AHP and FTOPSIS methods. Yitong et al [71] used the Monte Carlo (MC) model in the financial field to price financial options and multi-period income guarantees, aiding in risk analysis, management, financial analysis, and marketing. The MC simulation model provides a probability distribution of uncertain objects via probability simulations and the statistical testing of random variable functions.…”

Section: Applications Of Mcdm Methods In the Stock Market Contextmentioning

confidence: 99%

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Alsanousi,

Alqahtani,

Makki

et al. 2024

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This study presents a hybrid multicriteria decision-making approach for evaluating stocks in the Saudi Stock Market. The objective is to provide investors and stakeholders with a robust evaluation methodology to inform their investment decisions. With a market value of USD 2.89 trillion dollars in September 2022, the Saudi Stock Market is of significant importance for the country’s economy. However, navigating the complexities of stock market performance poses investment challenges. This study employs the best–worst method and the technique for order preference by similarity to identify an ideal solution to address these challenges. Utilizing data from the Saudi Stock Market (Tadawul), this study evaluates stock performance based on financial criteria, including return on equity, return on assets, net profit margin, and asset turnover. The findings reveal valuable insights, particularly in the banking sector, which exhibited the highest net profit margin ratios among sectors. The hybrid multicriteria decision-making-based approach enhances investment decisions. This research provides a foundation for future investigations, facilitating a deeper exploration and analysis of additional aspects of the Saudi Stock Market’s performance. The developed methodology and findings have implications for investors and stakeholders, aiding their investment decisions and maximizing returns.

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Section: Applications Of Mcdm Methods In the Stock Market Contextmentioning

confidence: 99%

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Alsanousi,

Alqahtani,

Makki

et al. 2024

Information

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show abstract

“…The BWM method has numerous salient advantages compared to other MCDM methods. With the advent of MCDM methods like the Ordinal Priority Approach (OPA) [ 80 , 81 ] and Level Based Weight Assignment (LBWA) [ 82 ], the challenge lies in assessing the accuracy of decision-makers responses, as they are now compelled to maintain consistency throughout the process [ 83 ]. Again, despite being less data-intensive, the Simple Multi-Attribute Rating Technique (SMART) and Swing methods encounter the drawback of being incapable of computing the consistency ratio (CR).…”

Section: Methodsmentioning

confidence: 99%

Analysis of the fire risks and mitigation approaches in the apparel manufacturing industry: Implications toward operational safety and sustainability

Siraj,

Debnath,

Payel

et al. 2023

Heliyon

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“…An application of a novel best-worst-method-based group decision-making approach was also reported by Haseli et al [38]. A simplified group BWM was proposed by Emamat et al [39]. They identified criteria for stock portfolio selection and developed a new multicriteria sorting method.…”

Section: Introductionmentioning

confidence: 95%

A Group Decision-Making Approach in MCDM: An Application of the Multichoice Best–Worst Method

2023

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Multicriteria decision-making (MCDM) techniques have successfully been used to address a wide range of real-world decision-making issues. The best–worst method (BWM) is one of the several deterministic MCDM approaches. A recently proposed method called the multichoice best–worst method (MCBWM) takes into account several linguistic terms for pairwise comparisons of relative preferences among the criteria. It has been shown that the MCBWM approach has advantages over BWM: it reduces the calculation and determines optimal weight values by providing the choices for the optimal solution. This paper proposes a unique method for group decision-making based on MCBWM. We extended the MCBWM to solve group decision-making problems. A novel solution approach was developed and validated for multiple problems. Two examples and one case study were solved using the proposed approach to demonstrate the validity and application of the proposed method. The results were further compared with existing models to validate the proposed approach. We found that the obtained ranking order for all problems is the same and that the proposed model has a higher consistency ratio than the existing approaches. This method can be extended to other mathematical programming models for collective decision making in uncertain situations.

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A novel hybrid simplified group BWM and multi-criteria sorting approach for stock portfolio selection

Cited by 19 publications

References 75 publications

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

A Hybrid MCDM Approach Using the BWM and the TOPSIS for a Financial Performance-Based Evaluation of Saudi Stocks

Analysis of the fire risks and mitigation approaches in the apparel manufacturing industry: Implications toward operational safety and sustainability

A Group Decision-Making Approach in MCDM: An Application of the Multichoice Best–Worst Method

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