Building an investment portfolio using the (Kataoka) model: An applied study on a sample of industrial companies listed on the Iraq stock exchange for the period (2020-2024)

The research aims to construct an investment portfolio using the (Kataoka) model as one of the behavioral approach models in portfolio construction and compare it with the market portfolio built within the study framework of the trade-off between return and risk. The study relies on data from the Iraq Stock Exchange ISX60 index. The research sample consists of ten industrial companies listed on the Iraq Stock Exchange, and the quarterly closing prices of these companies' stocks were analyzed for the period from January 1, 2020, to September 30, 2024. The data was processed using Excel (Solver packages). The study reached several findings, the most important of which is that the portfolio constructed based on the (Kataoka) model outperforms the market portfolio built in the study in terms of the trade-off between return and risk. One of the key recommendations of the research is that investors should utilize this model when forming their investment portfolios rather than diversifying randomly to ensure the benefits of portfolio investment with minimal risk.