MULTICRITERIA DECISION SUPPORT FOR STOCK SELECTION: AN IN-DEPTH COMPARISON OF ELECTRE III, TOPSIS, AND PROMETHEE
By Amina Zainab Bello, Chinedu Emeka Nwosu
Research Article
MULTICRITERIA DECISION SUPPORT FOR STOCK SELECTION: AN IN-DEPTH COMPARISON OF ELECTRE III, TOPSIS, AND PROMETHEE
ISSN: 3067-2562
DOI Prefix: 10.5281/zenodo.
Abstract
This paper explores the use of three multicriteria decision analysis (MCDA) methodsβ ELECTRE III with veto, TOPSIS, and PROMETHEEβin ranking stocks within a sector. Each method evaluates stocks based on fundamental, performance, and technical criteria to identify top performers. ELECTRE III with veto emphasizes robustness, TOPSIS focuses on balanced performance, and PROMETHEE customizes rankings based on specific preferences. The analysis finds common high-ranking stocks like Apple, Universal Display, and Microsoft across all methods, while each method also uniquely highlights different stocks. The paper demonstrates how these MCDA methods provide comprehensive insights for informed stock investment decisions.