ABSTRACT
AHP(the Analytical Hierarchy Process) is used to evaluate and rank of stocks in
investment. After building up the hierarchy structure and the judgment matrix, a reasonable
selecting decision is made by combinating the qualitative and quantitative analysis. This
article first elaborated the stock essential feature: 1st, may not the repayment, 2nd,
participations, 3rd, rentabilities, 4th, conductivities, 5th, price undulatory property and the
risk. And rested on the essential feature and the realistic market relates, has established the
influence stock primary factor which the article needed to analyze, namely macroscopic
factor, subjective factor, objective factor and technical factor. Through to each primary
factor's understanding and the analysis, established has affected each primary factor the
realistic factor, namely influence macroscopic factor state economy, bulk lots trend, economic
policy and thunderbolt; Affects the subjective factor the deadline by chance, the insider
information and the risk by chance; Affects objective factor the stock price, the company
condition and the stock nature; Influence technology factor MACD (index smooth similarities
and differences running mean line), RSI (relative strong and the weak target) and KDJ
(stochastic target). According to analytic hierarchy process's basic philosophy establishment
target stratum, the criterion level with the sub-criterion level, establishes the judgment matrix,
the establishment qualitative appraisal and the quantitative evaluation, thus makes the quota to
the stock the quality synthetic evaluation. At last, a practical case study is given to show that
AHP is a useful and effective method in stock selection.
Key words: AHP; stock-selection; decision making
