Title :
A study on investment decision making model: genetic algorithms approach
Author :
Lin, Wen-Shiu ; Chen, Jiah-Shing ; Lin, Ping-Chen
Author_Institution :
Dept. of Inf. Manage., Nat. Central Univ., Chung-Li, Taiwan
Abstract :
Genetic algorithms (GAs) are becoming a paramount research method because of their robustness due to mimicking the natural evolution mechanism. Genetic algorithms can easily learn to adapt to complex environments. The paper studies the application of genetic algorithms on a user-oriented “investment decision-making model”. The portfolio selection considers users´ preferences in addition to the common return and risk factors. Preliminary results show that the portfolios generated by GAs outperform some of the better mutual funds and the index
Keywords :
decision theory; genetic algorithms; investment; common return factors; complex environments; genetic algorithms approach; index; investment decision making model; mutual funds; natural evolution mechanism; risk factors; user-oriented model; users´ preferences; Decision making; Genetic algorithms; Information management; Investments; Mathematical model; Mathematics; Mutual funds; Portfolios; Quadratic programming; Robustness;
Conference_Titel :
Systems, Man, and Cybernetics, 1999. IEEE SMC '99 Conference Proceedings. 1999 IEEE International Conference on
Conference_Location :
Tokyo
Print_ISBN :
0-7803-5731-0
DOI :
10.1109/ICSMC.1999.814238
