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Evaluating multi-criteria ratings of financial investment options

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  • Chen, Andrew N.K.
  • Wang, Shin-Yun
  • Yu, Po-Lung

Abstract

In the financial market, most available rating information is based on multi-criteria and published by myriad agents or companies. Given a multi-criteria rating report on a finite number of assets (e.g., stocks, bonds, mutual funds), we can construct sets of ordered classes. If ratings from a published report have useful and valid information value as claimed, the average performances of assets within classes are expected to show some monotonic property. A set of hypotheses and empirical tests based on Value Line Mutual Fund Survey are provided to illustrate our proposed method. Implications and future research opportunities are also discussed.

Suggested Citation

  • Chen, Andrew N.K. & Wang, Shin-Yun & Yu, Po-Lung, 2014. "Evaluating multi-criteria ratings of financial investment options," International Review of Economics & Finance, Elsevier, vol. 31(C), pages 46-58.
    • Handle: RePEc:eee:reveco:v:31:y:2014:i:c:p:46-58
    DOI: 10.1016/j.iref.2013.12.003
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    References listed on IDEAS

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