A mathematical model for weighing investments |
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Authors: | Richard F. Melka† Janice Miller‡ Guy Mikolajczak‡ |
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Affiliation: | 1. Nuffield Department of Clinical Medicine , University of Oxford , Oxford , UK;2. School of Cultural and Language Studies, Faculty of Education , Queensland University of Technology , Brisbane, QLD , Australia |
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Abstract: | This model assumes three separate investors each with a set amount of money. The full amount is to be invested in six investments, namely: long‐term bonds, short‐term bonds, treasury bonds, common stock, treasury bills, and commercial paper. The investment is made according to weights assigned to safety of principal, growth, current income, taxable income and volatility. The weights are derived by obtaining pairwise comparison matrices and then using an averaging process. |
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Keywords: | engineering mathematics curriculum higher education undergraduate |
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