Abstract

The research aims to build the optimal investment portfolio using the Simple Ranking model, which is based on the market index model with the shade of allowing and not allowing short selling. And that the research community includes all the companies listed in the Iraqi Stock Exchange for the eight sectors, which are (banks, insurance, investment, services, industry, hotels and tourism, agriculture, communications, financial transfer). Which amounted to 133 companies, the research sample was selected, which consists of 41 companies It belongs to various economic sectors and is listed on the Iraq Stock Exchange for a period of (87 months). That is, the period extending from 17/3/2015 to 17/5/2022. We conclude through the research that it is possible to build an optimal portfolio using the Simple Ranking model based on the single-index market model, in light of allowing and disallowing short selling and comparing it with the market portfolio. The recommends the necessity of educating investors and dealers in the Iraqi Stock Exchange for the purpose of relying on the Simple Ranking model in the shadow of allowing and not allowing short selling to build an optimal portfolio. Because of its simplification of inputs and accurate and reliable results to choose the stocks that achieve the best trade-off between return and risk.

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The article was added to IASJ on 2023-01-11

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