Using the cut rate to build the optimal investment portfolio Applied study in a sample of companies in the industrial sector in the Iraqi market for securities

Abstract

Financial investment plays an important role in economic activity in accordance with the temporary transformation in the international economy. Its approaches and instruments have multiplied and varied in accordance with the opinion and the attitude of the investor to risk that accompanied with any investment.

            The aim of this study is to identify one of modern ways that are used to build   efficient  and optimal portfolio that is  the cut-off rate, which is used  to construct  a portfolio from some stocks  listed in Iraq Stock Exchange during the period (2006-2016) in terms of return and risk, The sample of the research consisted (21) companies, By preparing a data base of the returns of these stocks, and using some necessary statistical analysis the research choose the stocks that can be adopted within the portfolio. The result of the research shows the importance of the model in preparing the studies, helping the investors to evaluate their investments by using return and risk criteria together when forming their portfolios. and to rely on actual and projected accounting information because of its great importance in interpreting changes in stock prices. The research ended with some conclusions and recommendations