Building the optimal stock portfolio according to the single index model "analytical study in the Iraqi market for securities

Abstract

This research aims to build the optimal stock portfolio in the Iraq Stock Exchange using the single index model of Sharp, and for that, a detailed analysis of the research sample of 34 companies listed in the Iraq Stock Exchange, which was selected according to the specified conditions, was conducted. Some statistical and financial methods were used, in addition to relying on the EXCEL program. And the most important findings of the research (that building the optimal investment portfolio using the single index model leads to improving the effectiveness of the performance of investors in building their investment decisions by identifying the most desirable stocks and building their investment portfolios that are characterized by optimization of return and risk through the Trenor index compared to the cut-off rate) The study came out with a number of recommendations, the most important of which are: guiding investors to study issues related to return and risk at the level of all sectors, in order to reach an optimal investment portfolio capable of overcoming risk and economic fluctuations in various sectors.