Abstract
In recent years, multi-criteria sorting problems have become an interesting topic for researchers working on multi-criteria decision-making. ELimination and Choice Expressing REality (ELECTRE)-TRI and FlowSort are well-known approaches suggested for such a classification. The current study aimed to implement ELECTRE-TRI and FlowSort methods in the stock portfolio selection (SPS) as one of the most popular and important decision-making subjects and compare the outcomes of each method to understand how these methods perform in SPS problems. In this study, the best–worst method was applied to determine the weights of criteria. Four approaches for ELECTRE-TRI and 15 approaches for FlowSort were considered. Finally, 19 different approaches were considered to select stocks from a large pool of stocks. Results indicated that the model parameter should be properly defined to minimize inconsistencies and improve the power of the model.
Highlights
Multi-criteria decision-making (MCDM) is an integral part of operations research and occupies a prominent position within the field owing to significant theoretical and practical developments during the past five decades
As ELimination and Choice Expressing Reality (ELECTRE)-TRI and FlowSort need the weight of criteria, the best–worst method (BWM) was employed to determine the weight of eight criteria
This study aimed to examine ELECTRE-TRI and FlowSort for stock portfolio selection (SPS), and the analysis was performed based on the real return in the new period
Summary
Multi-criteria decision-making (MCDM) is an integral part of operations research and occupies a prominent position within the field owing to significant theoretical and practical developments during the past five decades. Thor et al (2013) compared four MCDM methods (i.e., AHP, ELECTRE, SAW, and TOPSIS) from the perspective of maintenance alternative selection. Ameri et al (2018) compared four MCDM methods: SAW, TOPSIS, VIKOR, and compound factor (CF). They prioritized sub-watersheds using the percentage and intensity of changes. Vakilipour et al (2021) evaluated the quality of life at different spatial levels using SAW, TOPSIS, VIKOR, and ELECTRE methods.
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