Determine optimal stocks using quadratic programming An applied study in the Iraqi market and the Amman stock market

Abstract

Financial investment plays an important role in economic activity in light of the ongoing transformations in the nature of the global economic system, and its means and methods have varied according to the investor’s vision and his position on the risks associated with any investment. This research aims to identify one of the latest methods used to build the optimal investment portfolio, which is programming. Quadratic, as it was used to build an investment portfolio of some shares traded in the Iraq and Amman stock exchanges during the period (2021-2015) according to the criteria (return and risk), as the research sample included shares for (15) companies, and through the preparation of a database based on returns Monthly stocks and using some necessary statistical analyzes, the research identified stocks that can be adopted to build the optimal portfolio. The results of this research showed the importance of employing quadratic programming in preparing studies and helping investors to make the investment decision rationally, as well as helping investors to evaluate their investments using the return and risk criterion together. When forming their investment portfolios, and relying on actual and expected accounting information because of their great importance in explaining the Changes that occur in stock prices.