Portfolio Model Considering Normal Uncertain Preference Relations of Investors

The paper examines the application of uncertainty theory to portfolio decision making, specifically focusing on constructing portfolio models based on uncertain preference relations. Firstly, we establish the theoretical foundation by introducing the theory of uncertainty, which includes uncertain m...

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Main Authors: Yu Zhou, Chun Yan, Xiangrong Wang
Format: Article
Language:English
Published: MDPI AG 2025-05-01
Series:Entropy
Subjects:
Online Access:https://www.mdpi.com/1099-4300/27/6/585
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author Yu Zhou
Chun Yan
Xiangrong Wang
author_facet Yu Zhou
Chun Yan
Xiangrong Wang
author_sort Yu Zhou
collection DOAJ
description The paper examines the application of uncertainty theory to portfolio decision making, specifically focusing on constructing portfolio models based on uncertain preference relations. Firstly, we establish the theoretical foundation by introducing the theory of uncertainty, which includes uncertain measure and normal uncertain distribution. Then, building upon Markowitz portfolio theory, we propose an uncertain preference relation prioritization model with chance constraints and an additive consistency portfolio model to facilitate rational decision making in a complex and uncertain financial environment. Furthermore, empirical analysis validates our model’s feasibility, demonstrating its advantages in maximizing returns and minimizing risks.
format Article
id doaj-art-fe1b08b413fb42799d456f5504ec2476
institution Kabale University
issn 1099-4300
language English
publishDate 2025-05-01
publisher MDPI AG
record_format Article
series Entropy
spelling doaj-art-fe1b08b413fb42799d456f5504ec24762025-08-20T03:24:36ZengMDPI AGEntropy1099-43002025-05-0127658510.3390/e27060585Portfolio Model Considering Normal Uncertain Preference Relations of InvestorsYu Zhou0Chun Yan1Xiangrong Wang2College of Mathematics and Systems Science, Shandong University of Science and Technology, Qingdao 266590, ChinaCollege of Mathematics and Systems Science, Shandong University of Science and Technology, Qingdao 266590, ChinaCollege of Mathematics and Systems Science, Shandong University of Science and Technology, Qingdao 266590, ChinaThe paper examines the application of uncertainty theory to portfolio decision making, specifically focusing on constructing portfolio models based on uncertain preference relations. Firstly, we establish the theoretical foundation by introducing the theory of uncertainty, which includes uncertain measure and normal uncertain distribution. Then, building upon Markowitz portfolio theory, we propose an uncertain preference relation prioritization model with chance constraints and an additive consistency portfolio model to facilitate rational decision making in a complex and uncertain financial environment. Furthermore, empirical analysis validates our model’s feasibility, demonstrating its advantages in maximizing returns and minimizing risks.https://www.mdpi.com/1099-4300/27/6/585uncertain preference relationshipadditive consistencynormal uncertainty distributionportfolio models
spellingShingle Yu Zhou
Chun Yan
Xiangrong Wang
Portfolio Model Considering Normal Uncertain Preference Relations of Investors
Entropy
uncertain preference relationship
additive consistency
normal uncertainty distribution
portfolio models
title Portfolio Model Considering Normal Uncertain Preference Relations of Investors
title_full Portfolio Model Considering Normal Uncertain Preference Relations of Investors
title_fullStr Portfolio Model Considering Normal Uncertain Preference Relations of Investors
title_full_unstemmed Portfolio Model Considering Normal Uncertain Preference Relations of Investors
title_short Portfolio Model Considering Normal Uncertain Preference Relations of Investors
title_sort portfolio model considering normal uncertain preference relations of investors
topic uncertain preference relationship
additive consistency
normal uncertainty distribution
portfolio models
url https://www.mdpi.com/1099-4300/27/6/585
work_keys_str_mv AT yuzhou portfoliomodelconsideringnormaluncertainpreferencerelationsofinvestors
AT chunyan portfoliomodelconsideringnormaluncertainpreferencerelationsofinvestors
AT xiangrongwang portfoliomodelconsideringnormaluncertainpreferencerelationsofinvestors