1. MODELS AND PROCEDURES OF INVESTMENT PROJECTS PORTFOLIO CONSTRUCTION BASED ON DYNAMIC APPROACH.
- Author
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Moskalenko, Valentyna, Zakharova, Tetiana, and Kryvoruka, Andriy
- Abstract
Functioning of the enterprise cannot be effective without investment activity. This paper examines the actual scientific problem of developing models and procedures of investment projects portfolio formation in the context of investment decision support, taking into account the impact of many external factors and changes in investment policy. The paper shows the investment portfolio formation for a specific investment policy based on different approaches. These technologies are implemented using dynamic and Boolean programming. Dynamic portfolio formation technology, which allows to plan investment resources at both tactical, and strategic level, is proposed. Projects for each time interval are selected according to the risk and return level of investment policy. Then, iterative process of portfolio formation begins. Optimal portfolio is formed on the first interval, where return serves as a criterion. All projects that were not included in this portfolio may be transferred to the next interval in the case the client agrees to get investments on the next time interval. The client can also reject investments. In this case, the projects that were not previously included in this interval may enter the portfolio instead of rejected. The iterative process ends when the selected investment policy is implemented. Based on the data of mathematical models and technologies, the decision support system in the form of program solutions, which allows to make scientifically-grounded decisions by forming the corresponding investment portfolio will be implemented. This system can be integrated into a corporate management system of the company, engaged in investment activities. [ABSTRACT FROM AUTHOR]
- Published
- 2014
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