Determining Investor Suitability Using the Analytic Hierarchy Process

A combined analytic hierarchy process and goal programming approach to international portfolio selection in the presence of investment barriers

“…1 As a first application, Saaty et al (1980) propose a hierarchical model of portfolio selection consisting of three separate hierarchies: the first is based on extrinsic factors, the second on intrinsic factors, and the third on investor's objectives. Bolster et al (1995) use the AHP to develop a theoretically sound and workable model for determining which investment is suitable for a particular individual investor. The overall objective of the considered asset allocation hierarchy is to provide retirement benefits efficiently.…”

“…In fact, Bolster et al (1995) state that the nature of the AHP is subjective, so the asset allocation weights are not derived through optimisation. Then, the GP model, incorporating the market weights of the maximum return, minimal variance, and AHP portfolios is formulated to determine the optimal international equity portfolios.…”

The Evaluation of the Biotechnology Cluster by Fuzzy AHP: Based on the GEM Model

“…This method has been found to be an effective and practical approach that can consider complex and unstructured decisions [12]. It has been applied to a host of MCDM problems, including determination of investor suitability [13], evaluating risk in the supply chain [14], and evaluating the clusters [6].…”

An Analytic Approach to Selecting a Nonprofit

“…The AHP, which was developed by Saaty (1980), is a decision-making tool that helps solve complex multi-attribute problems. It facilitates ranking a set of competing alternatives based on specific evaluation criteria, and it has been applied to a variety of problems in a diverse set of disciplines, such as selecting a project (Johnson and Hihn, 1980), selecting a microcomputer (Arbel and Seidmann, 1984), determining investor suitability (Bolster, Janjigian, and Trahan, 1995), selecting mutual funds (Saraoglu and Detzler, 2002), assigning sovereign debt ratings (Johnson, Srinivasan and Bolster, 1990), selecting a life insurance contract (Puelz, 1991), selecting public relations firms (Hsu, 2006), deciding on library acquisitions (Uzoka and Ijatuyi, 2005), and selecting sites for wildlife management (Thatcher, Van Manen, and Clark, 2006).…”