Synthetic utility index method and venturous capital decision‐making
Sifeng Liu
(School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, People’s Republic of China)
Yaoguo Dang
(School of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, People’s Republic of China)
Yi Lin
(Department of Mathematics, Slippery Rock University, Slippery Rock, Pennsylvania, USA)
521
Abstract
A new risk investment decision‐making method, the synthetic utility index method, based on the whitenization weight function of grey numbers and the capital assets pricing model is proposed in this paper. The new method overcomes the shortcomings of the expectation‐variance method and Sharpe's index method and avoids the inconvenience of constructing utility function to a certain extent as well.
Keywords
Citation
Liu, S., Dang, Y. and Lin, Y. (2004), "Synthetic utility index method and venturous capital decision‐making", Kybernetes, Vol. 33 No. 2, pp. 288-294. https://doi.org/10.1108/03684920410514238
Publisher
:Emerald Group Publishing Limited
Copyright © 2004, Emerald Group Publishing Limited