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FUZZY ECONOMIC REVIEW

ISSN (print) 1136-0593 · ISSN (online) 2445-4192

Using a fuzzy sets approach to select a portfolio of Greek government bonds

Michael Michalopoulos. Bank of Greece

Nikolaos S. Thomaidis, George D. Dounias. University of Aegean

Constantin Zopounidis. Technical University of Crete

Abstract

In this paper we investigate the application of a methodology based on fuzzy-sets theory to the selection of an optimal portfolio of Greek government bonds. Investors' goals for the different bond market scenarios are formulated in fuzzy qualitative terms, while a model of fuzzy mathematical programming is used for the specification of the portfolio that optimally meets the given goals. The reliability of the results obtained with this methodology is checked with the aid of simulation.

 

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