Evaluation of investment methods and comparison between the behavioral model and common logical models in choosing the optimal portfolio

The purpose of this research is to evaluate the investment methods and compare between the behavioral model and conventional rational models in choosing the optimal portfolio using cumulative perspective theory because the behavior of the stock market does not follow a linear pattern, for this reason, the methods A common line cannot be used to describe this behavior and be useful. Considering that choosing a portfolio is a difficult task according to different criteria and goals, in this research, an attempt was made to provide a solution for this problem by using cumulative perspective theory and the usefulness of the mentioned technique in choosing the best portfolio according to several Different criteria should be tested. The analyzed statistical sample is for 31 active companies in the period from the beginning of April 2015 to March 2014. The results of using cumulative perspective theory based on elliptic two-point distribution show that using this method over time and using more training data leads to the creation of a portfolio with better performance and a high standard. Also, the total portfolio, which is obtained by using the monthly average of the total stocks, has a favorable trainer criterion, which indicates better portfolio performance and creation of an optimal portfolio.