Table 6.

Evaluation criteria for the proposed smart decision framework in financial planning and investment optimization.

Criterion	Description	Impact on decision	Nature
: Expected return (ER)	Represents the anticipated annual return of an investment portfolio, estimated using historical trends, economic indicators, and forecasting models. It reflects the potential growth of invested capital under prevailing market conditions.	Higher expected returns suggest stronger growth prospects and support the selection of portfolios aimed at long-term wealth accumulation.	Benefit
: Portfolio risk (PR)	Describes the variability of portfolio returns caused by market volatility, asset interdependence, and systemic uncertainty. It indicates the level of exposure to unfavorable market movements.	An increase in portfolio risk implies greater uncertainty and a higher probability of losses, which may reduce portfolio stability and investor confidence.	Cost
: Value-at-risk (VaR)	Estimates the maximum potential loss of a portfolio over a specified time horizon at a given confidence level. It is commonly derived using simulation and stress-testing techniques.	Lower VaR values enhance downside protection and improve the portfolio’s ability to withstand adverse market scenarios.	Cost
: Liquidity ratio (LR)	Indicates the ease with which portfolio assets can be converted into cash without substantial price concessions. It reflects the portfolio’s responsiveness to changing market conditions.	Higher liquidity enables timely rebalancing and reduces exposure to forced losses during periods of market stress.	Benefit
: Inflation resilience (IR)	Measures the capacity of a portfolio to preserve real value during inflationary periods by accounting for inflation-sensitive assets and instruments.	Greater inflation resilience helps protect purchasing power and ensures more stable real returns over time.	Benefit
: ESG score (ESG)	Evaluates the degree to which an investment adheres to environmental, social, and governance principles, including sustainability practices, social responsibility, and corporate governance quality.	A higher ESG score supports sustainable investment objectives, regulatory compliance, and alignment with socially responsible investment strategies.	Benefit
: Diversification index (DI)	Reflects the extent of asset diversification across sectors, asset classes, and geographic regions based on correlation and allocation structure.	Improved diversification reduces concentration risk and contributes to more consistent portfolio performance across market cycles.	Benefit
: Sharpe ratio (SR)	Assesses risk-adjusted performance by comparing excess portfolio returns to overall volatility, providing a measure of return efficiency.	A higher Sharpe ratio indicates more effective risk utilization and supports performance comparison among competing investment strategies.	Benefit
: Transaction cost (TC)	Represents the total costs associated with trading activities, management fees, and operational expenses incurred during portfolio maintenance.	Higher transaction costs diminish net returns and may negatively affect portfolio efficiency, particularly in active trading environments.	Cost
: AI confidence index (AIC)	Captures the reliability of AI-driven financial predictions based on validation performance, robustness, and uncertainty estimation.	Higher confidence levels enhance trust in automated recommendations and support more dependable investment decisions.	Benefit