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Interval-Valued Intuitionistic Fuzzy Number with ELECTRE III<br />

Method for Portfolio Selection Problem<br />

Nur Narzihah Binti Hamzah<br />

Supervisor: Dr. Binyamin Bin Yusoff<br />

Bachelor of Science (Financial Mathematics)<br />

School of Informatics and Applied Mathematics<br />

The purpose of this research is to select the best stocks based on their rankings. The<br />

ELimination ET Choix Traduisant la REalite (ELECTRE III) is one of the methods that can<br />

be used to solve such problem under multiple conflicting criteria. The strengths of this<br />

method are it employs outranking relations and also take into consideration the<br />

preference thresholds. Fuzzy set theory is one of the tools used to deal with ambiguity<br />

caused by financial market and subjectivity of experts’ decisions. In real life, the experts<br />

may evaluate the performance of stocks by using the linguistic judgments. Hence, fuzzy<br />

ELECTRE III has been proposed. However, fuzzy ELECTRE III model is unable to deal<br />

with higher degree of uncertainty such as the hesitancy element. Hence we proposed<br />

ELECTRE III with Interval-valued Intuitionistic Fuzzy Number (ELECTRE III-IVIFN) as a<br />

holistic model that capable in modeling the complex problems of stock selection.<br />

862 | UMT UNDERGRADUATE RESEARCH DAY 2018

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