Sagala, Desi Ratnasari Natalia (2019) *STOCK PORTFOLIO ANALYSIS ON LQ45 ISSUERS IN THE INDONESIA STOCK EXCHANGE USING MEAN VARIANCE MODEL AND MEAN ABSOLUTE DEVIATION MODEL.* Undergraduate thesis, UNDIP.

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## Abstract

The development of the investment climate in Indonesia which is rapidly increasing shows the increasing public awareness to invest. Stocks are the capital market instruments that are most sought after by investors because the profits obtained are the most lucrative and affordable by all groups of people compared to other instruments. In investing in shares, an investor must know that the level of expected profits will be directly proportional to the risk to be borne. The investment risk can be minimized by forming a stock portfolio. Stock portfolios can be formed with several models, such as Mean Variance and Mean Absolute Deviation. In this research, the stock portfolio is formed by using the Mean Variance and Mean Absolute Deviation models on the LQ45 index of stock price data that incorporated in the BEI. After the portfolio is formed, portfolio performance is assessed using the M-square measure index. The results of the analysis of the formation of a stock portfolio show that the mean variance model is suitable for investors who have a risk averse response. Meanwhile, the mean absolute deviation portfolio model is suitable for investors who like risk (risk seekers). However, in its use the mean absolute deviation model is better used in building stock portfolio because it is easier to use. Keywords: stocks portfolio, mean variance model, mean absolute deviation model

Item Type: | Thesis (Undergraduate) |
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Subjects: | Q Science > QA Mathematics |

Divisions: | Faculty of Science and Mathematics > Department of Mathematics |

ID Code: | 84244 |

Deposited By: | INVALID USER |

Deposited On: | 13 Jun 2022 08:33 |

Last Modified: | 13 Jun 2022 08:33 |

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