Bombay Stock Exchange Portfolio Ranking using Combined Compromise Solution (CoCoSo) Method

Abstract

One of the decision problems in the financial domain is portfolio selection in investor’s point of view on the other hand portfolio management is in management point of view ,in both the cases ranking of the portfolio will be required.. While facing the complex market competitions, under the extremely competitive business environment financial institutions try their best to make an ultimate policy for portfolio selection to optimize the investor returns. Multi criteria decision making (MCDM) is one of the techniques which can be applied in better way to evaluate portfolio performance and finally decide ranking of the portfolio based on the multiple conflicting criteria of the indices. A portfolio may have many criterion such as low ,high, dividend, yearly return, price earnings ratio (P/E),price-to-book ratio(P/B) etc.. In this research work a popular MCDM method: A combined compromise solution (CoCoSo) is applied to obtain the rank of portfolio for further decision making process. Data of ten portfolios of Bombay Stock Exchange (BSE) namely BSE SENSEX, BSE GREENEX,BSE CARBONEX, BSE AUTO, BANKEX, BSE ENERGY, HEALTHCARE,IT, Power, Gas and Oil financial years: 2022-23 are collected for the study and to find out best portfolio. After applying COCOSO method BSE SENSEX is found to be better than other portfolios as first rank consistently for all three financial years