Building an optimal stock portfolio by solving a system of real-time equations under conditions of prohibited short selling: An analytical study of the Iraq Stock Exchange

Abstract

Select the optimal portfolio is one of the most important arguments in the field of contemporary finance and investment, and the first solution to this argument is Markowitz (1952). In construction and the method of solving simultaneous equations. The idea of this method is based on the idea of converting the properties of individual papers into equations according to precise mathematical scientific rules and procedures, and then adopting a distinct method for solving these simultaneous equations, and the goal behind that is to determine the identity of the papers to be included in the optimal portfolio as well as the optimal weight to be invested in each A component of this portfolio, under the condition that short selling is not allowed.