Framework to assist investment portfolio generation for financial sector

Several variables are influencing the financial performance of listed companies in the stock exchange, making the choice of an ideal investment portfolio complex. Multicriteria decision support methods emerge as a potential tool to support the investor in the asset selection process. Thus, this pap...

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Main Authors: Breno Barros Telles do Carmo, Pablo Picasso Morais de Medeiros, Thomas Edson Espíndola Gonçalo, Gabriela Colaço Correia
Format: Article
Language:English
Published: Universidade Nove de Julho - Uninove 2023-06-01
Series:Exacta
Subjects:
Online Access:https://periodicos.uninove.br/exacta/article/view/18687
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author Breno Barros Telles do Carmo
Pablo Picasso Morais de Medeiros
Thomas Edson Espíndola Gonçalo
Gabriela Colaço Correia
author_facet Breno Barros Telles do Carmo
Pablo Picasso Morais de Medeiros
Thomas Edson Espíndola Gonçalo
Gabriela Colaço Correia
author_sort Breno Barros Telles do Carmo
collection DOAJ
description Several variables are influencing the financial performance of listed companies in the stock exchange, making the choice of an ideal investment portfolio complex. Multicriteria decision support methods emerge as a potential tool to support the investor in the asset selection process. Thus, this paper proposes a framework to assist investors in generating an investment portfolio in financial sector companies considering the fundamentalist analysis approach. Based on selected investors, the study defined the appropriate minimum performance filters, criteria, and weights for stock selection in the financial sector. The portfolio was established based on investor constraints using the PROMETHEE V method. As a subsequent step, an entire linear programming model was implemented to define, given the available budget, the amount of capital to be allocated to each asset of the portfolio. Compared to other publications, the proposed model and assembling the stocks portfolio proposes capital allocation based on previously defined restrictions. Also, the research provides investors with a clear and accurate method for selecting a stock portfolio and allowing customization of the model.
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publishDate 2023-06-01
publisher Universidade Nove de Julho - Uninove
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spelling doaj-art-dff1773f18f247fd9f3183cc034191ae2025-08-20T02:54:43ZengUniversidade Nove de Julho - UninoveExacta1678-54281983-93082023-06-0121210.5585/exactaep.2021.18687Framework to assist investment portfolio generation for financial sectorBreno Barros Telles do Carmo0https://orcid.org/0000-0002-7506-7037Pablo Picasso Morais de Medeiros1https://orcid.org/0000-0002-0879-340XThomas Edson Espíndola Gonçalo2https://orcid.org/0000-0003-4430-9547Gabriela Colaço Correia3https://orcid.org/0000-0001-9281-5829Universidade Federal do Ceará / Departamento de Engenharia de Produção / Fortaleza – CEUniversidade Federal Rural do Semiárido (UFERSA) - Mossoró, Rio Grande do NorteUniversidade Federal Rural do Semiárido (UFERSA) - Mossoró, Rio Grande do NorteUniversidade Federal Rural do Semiárido (UFERSA) - Mossoró, Rio Grande do Norte Several variables are influencing the financial performance of listed companies in the stock exchange, making the choice of an ideal investment portfolio complex. Multicriteria decision support methods emerge as a potential tool to support the investor in the asset selection process. Thus, this paper proposes a framework to assist investors in generating an investment portfolio in financial sector companies considering the fundamentalist analysis approach. Based on selected investors, the study defined the appropriate minimum performance filters, criteria, and weights for stock selection in the financial sector. The portfolio was established based on investor constraints using the PROMETHEE V method. As a subsequent step, an entire linear programming model was implemented to define, given the available budget, the amount of capital to be allocated to each asset of the portfolio. Compared to other publications, the proposed model and assembling the stocks portfolio proposes capital allocation based on previously defined restrictions. Also, the research provides investors with a clear and accurate method for selecting a stock portfolio and allowing customization of the model. https://periodicos.uninove.br/exacta/article/view/18687StocksFundamentalist analysisMulticriteria methodsPROMETHEE V
spellingShingle Breno Barros Telles do Carmo
Pablo Picasso Morais de Medeiros
Thomas Edson Espíndola Gonçalo
Gabriela Colaço Correia
Framework to assist investment portfolio generation for financial sector
Exacta
Stocks
Fundamentalist analysis
Multicriteria methods
PROMETHEE V
title Framework to assist investment portfolio generation for financial sector
title_full Framework to assist investment portfolio generation for financial sector
title_fullStr Framework to assist investment portfolio generation for financial sector
title_full_unstemmed Framework to assist investment portfolio generation for financial sector
title_short Framework to assist investment portfolio generation for financial sector
title_sort framework to assist investment portfolio generation for financial sector
topic Stocks
Fundamentalist analysis
Multicriteria methods
PROMETHEE V
url https://periodicos.uninove.br/exacta/article/view/18687
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