Insurance the optimal investment portfolio using the Constant Proportion Insurance strategy CPPI

Abstract

The research aims to secure the investment portfolio using the CPPI fixed ratio strategy. The aim of using the CPPI strategy is to find new solutions to allow investors to reduce the risk of falling stock prices that make up the portfolio while benefiting from profits when they rise. The research community consisted of all the companies listed in the Iraq Stock Exchange for the eight sectors, which are (banking, insurance, investment, services, industry, hotels and tourism, agriculture, communications, and financial transfer), which amounted to 133 companies, and the research sample was chosen, which consisted of 42 A company belonging to various economic sectors and listed on the Iraq Stock Exchange for a period of (85 months), i.e. the period from 3/17/2015-3/17/2022. The research used a number of financial and statistical models, the most important of which is the single indicator model in calculating the expected rates of return and risk for the portfolio and the simple scaling model to build the optimal investment portfolio using the statistical program [Microsoft Excel vs.16]. The research reached a number of results, the most important of which is the superiority of the performance of the fixed ratios strategy on the market portfolio and the efficient uninsured portfolio. To which they are exposed as a result of the economic, political and security conditions of the country.