Portfolio Selection Analysis with a Fermatean Fuzzy-type AHP

This study aims to tackle decision-making problems on interval-valued Fermatean fuzzy sets; the current research proposed an approach based on the AHP method. The interval-valued Fermatean fuzzy set is a mathematical framework used in decision-making and modelling scenarios that involve uncertainty and imprecision. The interval-valued Fermatean fuzzy set extends traditional fuzzy sets by incorporating an additional layer of flexibility and expressiveness, particularly in cases where precise membership degrees are difficult to assign. The AHP method makes the problem more understandable by dividing it into a hierarchy of targets, criteria, sub-criteria, and alternatives, comparing and prioritizing options, and checking consistency. Multi-attribute decision-making algorithms are well-suited for portfolio selection problems. Complex subjective preferences and diversified financial indices affect investment decisions within the multi-attribute decision-making paradigm. For the investment portfolio selection problem, an algorithm implementation based on an interval-valued Fermatean fuzzy set is chosen. The S&P 500 companies are examined. Ten criteria are established for choosing investment portfolios. The investment portfolios were selected using a multi-attribute decision-making method based on interval-valued Fermatean fuzzy sets. The algorithm based on interval-valued Fermatean fuzzy sets and the portfolio decision-making process using these criteria is suitable for choosing the right options. A model that illustrates how choices about investment portfolios should be made using this procedure was created using a grounded theory methodology. The results show that efficient decision-making methods for investment portfolios create a portfolio mindset and assist in concentrating selection efforts on the appropriate projects. Additionally, it enables extremely flexible decision-making within the investment portfolio. These findings offer managers an evidence-based method for making decisions about their portfolios.

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Publication Details

Journal
Istanbul Journal of Economics / İstanbul İktisat Dergisi
Published
2025-07-14
DOI
https://doi.org/10.26650/istjecon2024-1478258
Primary Topic
Multi-Criteria Decision Making
Type
article
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article

Portfolio Selection Analysis with a Fermatean Fuzzy-type AHP

Murat Ki̇ri̇şçi̇, Serdar Kuzu, Ali Kablan, Özden Calay
Istanbul Journal of Economics / İstanbul İktisat Dergisi
Multi-Criteria Decision Making
article

Portfolio Selection Analysis with a Fermatean Fuzzy-type AHP

Murat Ki̇ri̇şçi̇, Serdar Kuzu, Ali Kablan, Özden Calay
article en

Abstract

This study aims to tackle decision-making problems on interval-valued Fermatean fuzzy sets; the current research proposed an approach based on the AHP method. The interval-valued Fermatean fuzzy set is a mathematical framework used in decision-making and modelling scenarios that involve uncertainty and imprecision. The interval-valued Fermatean fuzzy set extends traditional fuzzy sets by incorporating an additional layer of flexibility and expressiveness, particularly in cases where precise membership degrees are difficult to assign. The AHP method makes the problem more understandable by dividing it into a hierarchy of targets, criteria, sub-criteria, and alternatives, comparing and prioritizing options, and checking consistency. Multi-attribute decision-making algorithms are well-suited for portfolio selection problems. Complex subjective preferences and diversified financial indices affect investment decisions within the multi-attribute decision-making paradigm. For the investment portfolio selection problem, an algorithm implementation based on an interval-valued Fermatean fuzzy set is chosen. The S&P 500 companies are examined. Ten criteria are established for choosing investment portfolios. The investment portfolios were selected using a multi-attribute decision-making method based on interval-valued Fermatean fuzzy sets. The algorithm based on interval-valued Fermatean fuzzy sets and the portfolio decision-making process using these criteria is suitable for choosing the right options. A model that illustrates how choices about investment portfolios should be made using this procedure was created using a grounded theory methodology. The results show that efficient decision-making methods for investment portfolios create a portfolio mindset and assist in concentrating selection efforts on the appropriate projects. Additionally, it enables extremely flexible decision-making within the investment portfolio. These findings offer managers an evidence-based method for making decisions about their portfolios.

Istanbul Journal of Economics / İstanbul İktisat DergisiVol. 75(1)
Openalex Percentile: Top 80%
Multi-Criteria Decision Making
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Portfolio Selection Analysis with a Fermatean Fuzzy-type AHP — Murat Ki̇ri̇şçi̇, Serdar Kuzu, et al. · Istanbul Journal of Economics / İstanbul İktisat Dergisi (2025) | TGRS Research Map | TGRS