Abstract
Theoretically, the movement of the Composite Stock Price Index (CSPI) is in line with the company’s stock price movements. Hence, it would be appropriate to measure the CSPI contribution to the company’s stock price regarding modeling the company’s stock price. 2-dimensional Geometric Brownian Motion is believed to be the most appropriate model in this case. Therefore, this paper aims to project the share price of PT Telekomunikasi Indonesia in 2018 by considering the CSPI movement. The resulted mean absolute percentage error (MAPE) calculations lead to a conclusion that Prediction with 2-dimensional Geometric Brownian Motion (GBM) is more accurate than the individual modeling of stock prices of PT Telekomunikasi Indonesia. PT Telekomunikasi Indonesia Tbk’s stock price modeling is more appropriately-used by taking heed on the movement of the Composite Stock Price Index. It is conclusive that the two dimensional geometric Brownian motion model provides an accurate prediction of PT Telekomunikasi Indonesia Tbk shares with MAPE is 1.980296%.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
