A MODEL OF THE TRUST INVESTMENT PROCESS

When making a decision a trust officer in a bank is confronted with a large assortment of information. In keeping with the postulates of this theory, the main postulates for the analysis of the investment decision process are that there exist: 1. A memory that contains lists of industries each of which has a list of companies associated with it. The memory also contains information associated with the general economy, industries, and individual companies. The set of rules constitutes the structure of the decision processes for an individual investor. It might be compared to the "rules of thumb" of the traditional "expert," but there is an important difference In common with other problem-solving programs, the processes are used iteratively and recursively. Lists of industries and companies are searched for particular attributes; sublists are created, searched and divided again. For example, to obtain a high growth portfolio, the list of companies stored in memory is searched to obtain securities with the desired pand) characteristics.