Most of the existing portfolio selection models are based on the
probability theory. Though they often deal with the uncertainty via
probabilistic - proaches, we have to mention that the probabilistic
approaches only partly capture the reality. Some other techniques have
also been applied to handle the uncertainty of the ?nancial markets, for
instance, the fuzzy set theory [Zadeh (1965)]. In reality, many events
with fuzziness are characterized by probabilistic approaches, although
they are not random events. The fuzzy set theory has been widely used to
solve many practical problems, including ?nancial risk management. By
using fuzzy mathematical approaches, quan- tative analysis, qualitative
analysis, the experts' knowledge and the investors' subjective opinions
can be better integrated into a portfolio selection model. The contents
of this book mainly comprise of the authors' research results for fuzzy
portfolio selection problems in recent years. In addition, in the book,
the authors will also introduce some other important progress in the
?eld of fuzzy portfolio optimization. Some fundamental issues and
problems of po-
folioselectionhavebeenstudiedsystematicallyandextensivelybytheauthors to
apply fuzzy systems theory and optimization methods. A new framework for
investment analysis is presented in this book. A series of portfolio
sel- tion models are given and some of them might be more e?cient for
practical applications. Some application examples are given to
illustrate these models by using real data from the Chinese securities
markets.
