Abstract
This study deeals with an asset allocation problem formulated by the scenario method and the stochastic networks as an application of the system approach. Regarding the overall problem as ‘organization’, the system approach places each scenario problem in the Operational level and newly settled Supremal problem, which is responsible for the coordination of the activities of the Operational level, in the Organizational level. We can gain the optimum solution of the original asset allocation problem at the same time the Organization level achieves its Coordination goal in the hierarchically reconstructed overall problem by means of applying the coordination principle provided by the hierarchical system theory.
