Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin

Investment in stock market is a way of generating extra money. Essentially, the objectives of investment are to reduce the risk, increase the return and better diversification of capital investment. However, investment involves risk and investment in stock market is risky. Wise investment decision h...

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Main Author:	Zainol Abidin, Siti Nazifah
Format:	Thesis
Language:	English
Published:	2014
Online Access:	http://ir.uitm.edu.my/id/eprint/16459/ http://ir.uitm.edu.my/id/eprint/16459/1/TM_SITI%20NAZIFAH%20ZAINOL%20ABIDIN%20CS%2014_5.pdf

id	uitm-16459
recordtype	eprints
spelling	uitm-164592019-02-21T02:35:42Z http://ir.uitm.edu.my/id/eprint/16459/ Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin Zainol Abidin, Siti Nazifah Investment in stock market is a way of generating extra money. Essentially, the objectives of investment are to reduce the risk, increase the return and better diversification of capital investment. However, investment involves risk and investment in stock market is risky. Wise investment decision has to be made in order to prevent any loss of capital investment. As to help the investors, this study proposed four stages of investment framework which are selecting, forecasting, distributing and estimating profit. The proposed method can be used to select the right stocks, forecast the future prices, distributing the capital investment and estimating the profit gained. The mathematical models involved are cluster analysis, geometric Brownian motion and analytic hierarchy process. The effectiveness of the proposed method is tested on a real investment situation in Bursa Malaysia involving small size companies. Furthermore, methodology is build to group a large amount of stocks into several clusters based on their performance and selected the clusters that gave high return to proceed with forecasting future closing prices. Then, eight stocks from the higher percentage increase of forecasted return are selected to carry on with distribution proportion of capital investment. Profit estimation can be made after all the stages are analyzed. It is found this proposed method is able to reduce the risk of loss, increase the return and better diversification of capital investment. 2014 Thesis NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/16459/1/TM_SITI%20NAZIFAH%20ZAINOL%20ABIDIN%20CS%2014_5.pdf Zainol Abidin, Siti Nazifah (2014) Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin. Masters thesis, Universiti Teknologi MARA.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
description	Investment in stock market is a way of generating extra money. Essentially, the objectives of investment are to reduce the risk, increase the return and better diversification of capital investment. However, investment involves risk and investment in stock market is risky. Wise investment decision has to be made in order to prevent any loss of capital investment. As to help the investors, this study proposed four stages of investment framework which are selecting, forecasting, distributing and estimating profit. The proposed method can be used to select the right stocks, forecast the future prices, distributing the capital investment and estimating the profit gained. The mathematical models involved are cluster analysis, geometric Brownian motion and analytic hierarchy process. The effectiveness of the proposed method is tested on a real investment situation in Bursa Malaysia involving small size companies. Furthermore, methodology is build to group a large amount of stocks into several clusters based on their performance and selected the clusters that gave high return to proceed with forecasting future closing prices. Then, eight stocks from the higher percentage increase of forecasted return are selected to carry on with distribution proportion of capital investment. Profit estimation can be made after all the stages are analyzed. It is found this proposed method is able to reduce the risk of loss, increase the return and better diversification of capital investment.
format	Thesis
author	Zainol Abidin, Siti Nazifah
spellingShingle	Zainol Abidin, Siti Nazifah Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
author_facet	Zainol Abidin, Siti Nazifah
author_sort	Zainol Abidin, Siti Nazifah
title	Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
title_short	Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
title_full	Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
title_fullStr	Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
title_full_unstemmed	Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin
title_sort	integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / siti nazifah zainol abidin
publishDate	2014
url	http://ir.uitm.edu.my/id/eprint/16459/ http://ir.uitm.edu.my/id/eprint/16459/1/TM_SITI%20NAZIFAH%20ZAINOL%20ABIDIN%20CS%2014_5.pdf
first_indexed	2023-09-18T22:56:07Z
last_indexed	2023-09-18T22:56:07Z
_version_	1777417865183363072

Integrating cluster analysis, geometric brownian motion and analytic hierarchy process in capital allocation / Siti Nazifah Zainol Abidin

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