Building an investment portfolio according to behavioral financial models

Abstract

This research stems from the topic of building an optimal investment portfolio in the Iraq Stock Exchange according to behavioral financial models, knowing the impact of these models on both return and risks the investment portfolio, and then evaluating which of these models is the best for building Optimal investment portfolio.

The research problem crystallized around the intellectual debate resulting from the question: Is it possible to reduce risks by building an investment portfolio according to behavioral finance models?  Using the financial and statistical methods to cover the practical side, represented by the (Roy) model in the ISX60 index, and the (Telser) model in the ISX60 index, by relying on (Excel16) and (SPSS25) programs, and there are a number of conclusions that the researcher reached, the most important of which depend on the characteristics of  The investment portfolio return and risk depends on the characteristics of the securities constituting it in terms of return and risk and the interrelationships between them, as well as the percentage invested in each of them and according to the two models.  The process of investing in the portfolio that the investor seeks to achieve, as well as the use of correct scientific methods to determine the options of investors in light of the return and risk of the available securities.