Research Article
Representation Bias, Return Forecast, and Portfolio Selection in the Stock Market of China
Table 1
Hierarchy, criteria, and weights in the stock selection.
| | Hierarchy | Criteria | Weights | Weights notations |
| | Investment environment | Economics | 0.2 | | | Government supervision | 0.1 | | | Policies | 0.15 | | | Industry situations | 0.325 | | | Area situations | 0.125 | | | Others | 0.1 | |
| | Company issues | Issuance time | 0.1 | | | Issuance area | 0.1 | | | Substantial shareholders | 0.15 | | | Tradable shareholders | 0.15 | | | Company executives | 0.2 | | | Significant matters | 0.2 | | | Others | 0.1 | |
| | Profitability of the stocks | Stock market segment | 0.1 | | | Market value | 0.1 | | | Coupon value | 0.06 | | | EPS | 0.1 | | | Shareholders' equity | 0.06 | | | Dividends and placing | 0.1 | | | Earnings | 0.1 | | | Volume | 0.1 | | | Risk assessment | 0.1 | | | The growth of the stock | 0.1 | | | ROE | 0.08 | | | Others | 0.02 | |
| | Investors’ perspectives | The chosen fund company | 0.2 | | | Financial ability | 0.2 | | | Risk tolerance | 0.25 | | | Expectations for returns | 0.25 | | | Others | 0.1 | |
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