The Economic Risks of Investment and Diversification Across Economic Sectors

Abstract

Economic portfolio investment management means managing the investment business through the diversification of the stocks and bonds to achieve profits from such type of assets and, enhancing the financial resources for the establishment. But such priority needs allocating the resources within a period of time and systematic steps within a project. Such system should be consistent with the aims of achieving the objectives of the portfolio investment; delivering correct data needed and get rid of any non-profitable investment in the earliest time. The purpose of this thesis is to shed light on the importance of establishing a professional, convenient strategy to achieve the objectives of setting a portfolio investment of stocks and bonds. This study was accomplished through questionnaires that surveyed (31) private establishments representing a 52 percent of in the commercial sector of the economy that are located in the capital Baghdad / (Iraq). Only 30 establishments returned their forms and these forms were used in the data analysis representing a 96 percent response rate which was acceptable statistically. Findings revealed that investment objectives for these establishments are (profits maximization, achieving the best alternative, alignment between strategies and objectives, and choosing the right investment).