The possibility of building an efficient passive portfolio in light of the Covid 19 pandemic

A letter submitted to the Council of the College of Administration and Economics, University of Karbala – which is part of the requirements for obtaining a master’s degree in banking and financial sciences.

Submitted by

Entidhar Lateef Abdoun Kazem Al Sharifi

supervision by

A.M.D.

 Mohammed Faiz Hassan Al-Zauba’ay

Abstract

The current study aims to build and test an efficient passive portfolio in light of the Covid 19 pandemic in the Iraq Stock Exchange, as this portfolio seeks to find new solutions for the Iraqi investor and how to build a portfolio in light of the sudden crises affecting the financial markets. To achieve this, the current study proceeded to compare two periods before… During Covid 19 and the extent to which the passive portfolio is affected by this crisis in order to determine the best passive portfolio in light of market conditions. The study population consisted of all companies listed in the Iraq Stock Exchange, and the study sample was from all eight sectors (banking, insurance, investment, industry, agriculture, services, hotels, tourism), amounting to (60) companies belonging to various economic sectors listed in the Iraqi Stock Exchange. Iraq Securities for the period from 1/1/2017 until 8/1/2023. The study used a number of financial and statistical models and evaluation models according to the risk-adjusted return, the most important of which is the Sharpe model using the statistical program (Microsoft Excel). It reached a number of results, the most important of which is that building the portfolio according The passive strategy represented by the buy and hold strategy achieves the best exchange between return and risk and achieves a rate of return and performance that exceeds the rate of return and performance of the index portfolio. The most important recommendations of the study were that investors wishing to invest in the Iraqi Stock Exchange should follow the passive portfolio strategy represented by the buy and hold method in building portfolios after the superiority of this strategy. The strategy applies to both the index portfolio and passive portfolios according to the sampling method.

The possibility of building an efficient passive portfolio in light of the Covid 19 pandemic

A letter submitted to the Council of the College of Administration and Economics, University of Karbala – which is part of the requirements for obtaining a master’s degree in banking and financial sciences.

Submitted by

Entidhar Lateef Abdoun Kazem Al Sharifi

supervision by

A.M.D.

 Mohammed Faiz Hassan Al-Zauba’ay

Abstract

The current study aims to build and test an efficient passive portfolio in light of the Covid 19 pandemic in the Iraq Stock Exchange, as this portfolio seeks to find new solutions for the Iraqi investor and how to build a portfolio in light of the sudden crises affecting the financial markets. To achieve this, the current study proceeded to compare two periods before… During Covid 19 and the extent to which the passive portfolio is affected by this crisis in order to determine the best passive portfolio in light of market conditions. The study population consisted of all companies listed in the Iraq Stock Exchange, and the study sample was from all eight sectors (banking, insurance, investment, industry, agriculture, services, hotels, tourism), amounting to (60) companies belonging to various economic sectors listed in the Iraqi Stock Exchange. Iraq Securities for the period from 1/1/2017 until 8/1/2023. The study used a number of financial and statistical models and evaluation models according to the risk-adjusted return, the most important of which is the Sharpe model using the statistical program (Microsoft Excel). It reached a number of results, the most important of which is that building the portfolio according The passive strategy represented by the buy and hold strategy achieves the best exchange between return and risk and achieves a rate of return and performance that exceeds the rate of return and performance of the index portfolio. The most important recommendations of the study were that investors wishing to invest in the Iraqi Stock Exchange should follow the passive portfolio strategy represented by the buy and hold method in building portfolios after the superiority of this strategy. The strategy applies to both the index portfolio and passive portfolios according to the sampling method.