Title
How to invest in belgian shares by MULTIMOORA optimizationHow to invest in belgian shares by MULTIMOORA optimization
Author
Faculty/Department
Faculty of Applied Economics
Research group
Accountancy and Finance
Publication type
article
Publication
,
Subject
Economics
Source (journal)
Journal of business economics and management. -
Volume/pages
14(2013):5, p. 940-956
ISSN
1611-1699
ISI
000326849900008
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
Different multiple objectives expressed in different units make optimization difficult. Therefore, the internal mechanical solution of a Ratio System, producing dimensionless numbers, is preferred to weights, which are most of the time used to compare the different units. In addition, the ratio system creates the opportunity to use a second approach: a non-subjective Reference Point Theory. Therefore, the Reference Point Theory uses the ratios found in the ratio system as co-ordinates for the alternative solutions, which are then compared to a Maximal Objective Reference Point. The two approaches form a control on each other. This overall theory is called MOORA (Multi-Objective Optimization by Ratio Analysis). The results are still more convincing if a Full Multiplicative Form is added, three methods assembled under the name of MULTIMOORA. At that moment, the control by three different approaches forms a guaranty for a solution being as non-subjective as possible. As to calculate the sum of three obtained ranks is not allowed, a theory of Ordinal Dominance is developed in order to remain in the ordinal sphere. MULTIMOORA is used to decide upon an investment in Belgian shares on basis of a ranking in the BEL20 Index.
E-info
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000326849900008&DestLinkType=RelatedRecords&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000326849900008&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000326849900008&DestLinkType=CitingArticles&DestApp=ALL_WOS&UsrCustomerID=ef845e08c439e550330acc77c7d2d848
Handle