A Bhattacharyya Triangular intuitionistic fuzzy sets with a Owa operator-based decision making for optimal portfolio selection in Saudi exchange

Abstract

The capital market in Saudi Arabia is fast growing. Assurance of an informed decision while investing in the Saudi Stock Exchange is critical. There has also been an increased quest for advanced decision-making tools due to complexities in selecting a given portfolio, which remains a critical issue of concern among investors in the face of modern investment environment challenges. The research paper offered shall deliver an innovative MCDM technique through which an MCDM model shall be developed in the Saudi Stock Exchange. This MCDM model uses BTIFS with an OWA operator. A novelty of the proposed study is identifying the optimal weight that will be obtained through a newly developed optimization technique known as TFOA. TFOA is a hybrid methodology that brings on board the strengths of DMOA, MPA, and EO for a more precise and efficient calculation of the ideal weights in the portfolio selection process. This would improve the adaptability and effectiveness of the suggested MCDM structure. The effectiveness of the approach is established by comparative analysis with the already existing methods of MCDM, which proves it superior for the optimization of investment portfolios. Sensitivity analysis also conducted to evaluate the strength and dependability of the suggested method. The ranking of weighted portfolios by the ELECTRE method is also, which more establishes the applicability of BTIFS-OWA in real life. The results indicate that the BTIFS-OWA approach along with the TFOA for determining optimal weights provides significant improvements in decision-making accuracy and portfolio optimization compared to traditional methods.

Keywords

• multiple criteria decision-making
• bhattacharyya distance
• triangular intuitionistic fuzzy sets
• owa operator
• saudi stock market