Fundamentals Rating Based on the Additive Ratio Assessment (ARAS) and Stochastic Utility of Investors: Evidences from Tehran Stock Exchange

Given the variety of factors influencing on financial decision making and subjective nature of the most decisions is only part of their features associated with Multi-Criteria Decision Making. The aim of study is the rating of companies at TSE based on fundamental analysis and the appraisal of investor’s utility during the period of 1390 to 1396 years. So first, after determining the weights of indicators used based on the opinion the experts and using the ARAS method, the companies have been ranked and then their utility basis on stochastic dominance method have been investigated. The findings of research show that the first-order stochastic dominance cannot be identified. However the result ofThe Davidson test for the stochastic dominance of the second and third order indicate that the high-rating stocks has dominance to low-rating stocks.