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Showing posts with the label investment decisions

Improving Investment Decisions with Decision Making Models

Investment decisions can have a large impact on society. All investment decisions contain an inherent level of risk. This risk is associated with poor returns, loss of money, missed opportunities or even bankruptcy. Research by Wu , et. al. (2012) creates an analytical hierarchy process-group decision making model (IAHP-GDM) that works to complement group decision-making for more accurate investment decisions.  The types of risks investment managers make are related to strategy selection, social risks, policy risks, credit risks, economic risks, technology risks, interest rate fluctuation, operational risks, and contract risks (Shen, 2009; Zavadskas, et. al., 2010).   Decision-makers should seek to understand these risks and attempt to encourage the best decisions possible. This can become even more difficult when higher volumes of information create confusion.  These risks can be heightened when one person makes decisions based upon limited knowledge. In an investor’s per