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FC Approach in Portfolio Selection of Tehran's Stock Market

  • Shadkam, Elham (Department of Industrial and Systems Engineering, Isfahan University of Technology)
  • Received : 2014.02.20
  • Accepted : 2014.04.28
  • Published : 2014.05.30

Abstract

The portfolio selection is one of the most important and vital decisions that a real or legal person, who invests in stock market, should make. The main purpose of this article is the determination of the optimal portfolio with regard to relations among stock returns of companies which are active in Tehran's stock market. For achieving this goal, weekly statistics of company's stocks since Farvardin 1389 until Esfand 1390, has been used. For analyzing statistics and information and examination of stocks of companies which has change in returns, factors analysis approach and clustering analysis has been used (FC approach). With using multivariate analysis and with the aim of reducing the unsystematic risk, a financial portfoliois formed. At last but not least, results of choosing the optimal portfolio rather than randomly choosing a portfolio are given.

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