Building a portfolio of common stocks under the Kida model: An analytical study in sectors of Iraq Stock Exchange

Abstract

The main purpose of this study is to build an investment portfolio of ordinary shares under the Kedah model to avoid financial failure, and in order to achieve the objective of the study, the Iraq Stock Exchange was chosen as an applied sample, and the study methodology depends on identifying a major problem that has been clarified through several questions centered on an important question, is it possible to use the Keida model to predict financial failure in order to build an investment portfolio of ordinary shares?, The study sample was also reflected in the sectors of the Iraq Stock Exchange and the banking sector by (6) banks, as the period of studying companies was limited between (2017-2022), which indicates that the study period was five years, and in order to extract the results in light of the data withdrawn from the Iraq Stock Exchange The study sample resorted to the use of a set of important indicators in financial, administrative and statistical analysis according to the (SPSS) program. V.23 & Excel.v.2010), and accordingly the study reached a set of results, perhaps the most prominent of which represents the best diversity in the investment portfolio can be achieved by building a diversified portfolio of ordinary shares belonging to different sectors and possessing different risks and benefits, and the study also recommends that care must be taken to achieve the appropriate balance between investment risks and expected returns to achieve the best financial performance of the investment portfolio.