Abstract

Investment is the placement of a number of funds at this time with the hope of obtaining benefits in the future. Stocks are one of the most popular investments. The current millennial generation is interested in investing in stocks because the capital required is not too large. However, in choosing a good stock for investment, the ability to read financial ratios is required. Errors in reading financial ratios will cause stock investment not to go as expected. To help with this, a system capable of supporting decisions is needed. There are several methods that can be used to produce a decision support system. In this study, the authors use the Capital Asset Pricing Model (CAPM) method in designing a decision support system in stock investment selection.The method in this research is through observation, interview, and literature study. The system design is made using Contex Diagram, HIPO, DAD, and database design. The system is made in a program with the PHP programming language. The process of determining the selection of stock investments using the Capital Asset Pricing Model (CAPM) method can simplify the determination process. Then with the method. can make it easier to determine the selection of stock investment.The final result in the stock investment selection process is a report that states investment (Ri> E) or not investment (Ri <E).

Highlights

  • INTRODUCTIONHave collections of stocks (portfolios) of different types or often referred to as stock diversification

  • Have collections of stocks of different types or often referred to as stock diversification

  • This research was conducted with the aim of finding an overview of the stock investment decision making by investors using the Capital Asset Pricing Model method on the Kompas 100 Index

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Summary

INTRODUCTION

Have collections of stocks (portfolios) of different types or often referred to as stock diversification. In order to calculate and even reduce the risks they must "Efficient stocks can be determined by choosing a certain face This type of risk is grouped into three major groups, expected return rate, minimizing the risk or minimizing namely systematic risk or called systematic risk, a certain risk level, maximizing the expected return". If a systematic avoided because these stocks have a small individual rate of risk occurs, the investment made on one or more types of return compared to the expected return. The benefit of this research is that potential investors will CAPM can help investors in calculating the risk that understand better in determining investment options, or how cannot diversify in a portfolio and compare it with the to diversify their shares in order to get a bigger return.

Calculating the
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