The primary purpose in this book is to present an integrated and innovative methodological
approach for the construction and selection of equity portfolios. The approach takes into
account the inherent multidimensional nature of the problem while allowing the decision makers
to incorporate specified preferences in the decision processes. A fundamental principle of
modern portfolio theory is that comparisons between portfolios are generally made using two
criteria the expected return and portfolio variance. According to most of the portfolio models
derived from the stochastic dominance approach the group of portfolios open to comparisons is
divided into two parts: the efficient portfolios and the dominated. This work integrates the
two approaches providing a unified model for decision making in portfolio management with
multiple criteria.?
