Abstract
In this paper, based on existing results, decision making about portfolio investment schemes is discussed, ordering method of fuzzy numbers of interval value is shown, corresponding auxiliary models are established and solutions are provided with theories of fuzzy mathematics, optimization theory and numerical calculation, etc. Then it applies software programming to solve the portfolio investment situation between investors in savings and four securities according to the established models. The result shows that investors can choose the risk coefficient that they can bear to reach the maximum value of expected returns. The greater the risk coefficient, the greater the income, the smaller the risk coefficient and the smaller the income. Investors can determine their own portfolio strategy according to their own conditions in order to meet their own interests.
Highlights
Portfolio investment is quoted securities investment, a narrow sense of investment
In this paper, based on existing results, decision making about portfolio investment schemes is discussed, ordering method of fuzzy numbers of interval value is shown, corresponding auxiliary models are established and solutions are provided with theories of fuzzy mathematics, optimization theory and numerical calculation, etc
For the formula (4.2), when the bank interest rate is 0.07, the securities portfolio investment strategy chosen shall be like this: 83.15% of all capital is saved into the bank, 7.66% of all capital is invested into security of S1CNPC, 9.19% is invested into security of S3 Wanke A, so obtain the maximum expected return 8.07% on the premise of bearing risk coefficient b1 and b2
Summary
Portfolio investment is quoted securities investment, a narrow sense of investment. It refers to the behavior that an enterprise or individual buys negotiable securities such as stocks and bonds with accumulated money to earn profits. Risk refers to the uncertainty of the future income situation, that is, the possibility of making a profit and a loss. It can be summed up as system risk and non-system risk. It mainly includes income profit and capital gains. Portfolio investment has the following characteristics: 1) portfolio investment is featured with a high degree of “market forces” [1] [2] [3]; 2) portfolio investment is risk investment to quoted securities expected to lead income; 3) investment and speculation are the two indispensable behaviors in portfolio investment; 4) portfolio investment in level-2 market will not increase total social capital, but redistribute between holders
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