Record Details

Applying Portfolio Selection: A Case of Indonesia Stock Exchange

Journal of Management and Entrepreneurship

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Field Value
 
Title Applying Portfolio Selection: A Case of Indonesia Stock Exchange
 
Creator Praptiningsih, Maria
 
Subject —
allocation, modern portfolio theory, portfolio selection
 
Description This study has three objectives. First, we investigate whether Modern Portfolio Theory can be applied on the financial decisions that made by investors or individual in order to increase their wealth through investment activities. Second, we examine the real behavior of each asset in terms of capital assets pricing models. Third, we determine whether our portfolio is the best model to produce a higher return in a given level of risk or a lowest risk in a particular level of return. It is found that three different stocks listed in the Indonesia Stock Exchange have a positive relationship with market returns. The reactions of the investor regarding these stocks are not influenced by each other. Lastly, the minimum variance portfolio (MVP) point which represents the single portfolio with the lowest possible level of standard deviation, occurs when the expected return of portfolio is approximately 2.2 percent at a standard deviation of 8.8 percent.
 
Publisher Institute of Research and Community Outreach - Petra Christian University
 
Contributor —
 
Date 2012-04-10
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
 
Identifier http://jurnalmanajemen.petra.ac.id/index.php/man/article/view/18369
10.9744/jmk.14.1.13-22
 
Source Jurnal Manajemen dan Kewirausahaan; Vol 14, No 1 (2012): MARCH 2012; 13-22
1411-1438
 
Language eng
 
Relation http://jurnalmanajemen.petra.ac.id/index.php/man/article/view/18369/18194
 
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