Portfolio Management with MOORA Method: A Comparison with Traditional Methods and Chance Factors

Portfolio selection is one of the most important issues of portfolio management in terms of maximizing the expected return on investment and minimizing risk. The purpose of this study is to observe the performances of the portfolios composed of the shares issued using the MOORA Ratio Method. Within this scope, the performance of the six-investment period between the period of 31.12.2013 - 31.12.2016 of 20 firms from various sectors in Borsa Istanbul BIST30 Index; liquidity, profitability, financial structure, and market rates were analyzed by MOORA Method. According to the results of the analysis, only the portfolios where 10 firms with high performances were included were formed and their returns for the relevant investment periods were calculated. It shows that the MOORA method can generate more successful portfolios compared to the other two traditional methods