| Fuzzy set theory has proved to be very efficient to handle certain type of uncertainties encountered in a variety of areas. It provides an excellent mathematical framework for explicitly incorporating imprecision and vagueness into the decision making models, especially when the system involves human subjectivity. Uncertainty is present in virtually all walks of life.; In this thesis we make use of fuzzy sets theory to model imprecision in a net present value problem, capital asset pricing model and the scoring model decision making problem under fuzzy environment. Since, triangular fuzzy numbers provides a good compromise between computational efficiency and realistic modeling of imprecision, therefore, use of such numbers is made throughout the thesis. We model a number of investment decision making problems in the field of finance and actuarial science under fuzzy environment. We also discuss the methods to obtain their solutions and interpretation to those solutions.; Chapter 1 provides an introduction to the concepts of decision making and presents introduction, prerequisites, the motivations and the needs for a comprehensive methodology for analyzing certain problems in the areas of finance and actuarial science under fuzzy environment. Chapter 2 deals with the literature review of the related work done by other researchers relevant to this research. Net present value problem under fuzzy environment, is considered in Chapter 3. Chapter 4 deals with the capital asset pricing model under fuzzy environment and makes its use in the net present value problem when the returns on investments is governed by the capital asset pricing model under fuzzy environment. Chapter 5 deals with the scoring models under fuzzy environment. Finally, the conclusion and the discussion on the contributions made by the thesis, along with some recommendations for further research, are given in Chapter 6. |
