Paper Title :Building an Investment Portfolio using Neural Networks (An Applied Study: Amman Stock Exchange)

Author :Mohammad Otai, Entizar Alserhan, Meri' Bani Khalid

Article Citation :Mohammad Otai ,Entizar Alserhan ,Meri' Bani Khalid , (2018 ) " Building an Investment Portfolio using Neural Networks (An Applied Study: Amman Stock Exchange) " , International Journal of Soft Computing And Artificial Intelligence (IJSCAI) , pp. 38-50, Volume-6,Issue-1

Abstract : This study aims to build a portfolio using artificial neural networks and it is an applied study on Amman financial market, and the study society consisted of daily closing prices of listed companies in Amman financial market for the period (2000-2011), the study has followed the deductive method, relying on two types of data sources, namely: are primary and secondary data. As a result of building an artificial neural network the study found a range of result throughout the using of revenue derived from the daily closing prices for companies as follows: The network showed its ability to deal with a huge amount of random data inputted, especially in the light of seen developing technology for buying and selling securities in the financial markets, and its ability to self-learning and creating pattern to reach the desired results for making the investment decision. The neural network moved away from any external influences affecting the decision-making through its reliance on the financial statements and the processing of daily returns for the companies, and so they are characterized by neutrality in decision-making. The study recommends: using the proposed neural networks to build portfolios and to help taking the investment decision, in addition to using it with varying level of risk in order to take into account all types of risk and the policies pursued by investors. Keywords - Investment Portfolio, Artificial Neural Networks, Quadratic Programming, Amman Stock Exchange.

Type : Research paper

Published : Volume-6,Issue-1

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