Abstract
This study aims to know the optimal portfolio establishment using Markowitz model on Jakarta Islamic Index (JII) stocks in the period of December 2013-May 2019. The population of this study consisted of the company stocks on Jakarta Islamic Index (JII) in the period of December 2013-May 2019, and there were 59 stocks. While the study sample consisted of 14 company stocks and selected based on purposive sampling method. Data collection used in this study using documentation. Data analysis used in this study using the stages of Markowitz model and started collecting the close price until an optimal portfolio establishment. The result of this study showed that there were 8 company stocks included in the optimal portfolio. Namely AKRA (5,01%), ICBP (9,92%), INDF (3,75%), SMGR (8,61%), TLKM (29,01%), UNTR (20,30%), UNVR (20,88%), WIKA (2,53%). The expected return of the portfolio of 0,84%. Therefore, portfolio risk of 3,16%and smaller than the risk of individual stocks in the research sample.
Highlights
Every individual is likely to think about current needs, and for future needs that are full of uncertainty
The results of this study showed that there were 10 stocks included in the optimal portfolio, namely AKRA, ADRO, ICBP, INCO, MYRX, PTPP, PWON, TPIA, UNTR, Unilever Indonesia Tbk. (UNVR)
That was because of the increase of Wijaya Karya (Persero) Tbk. (WIKA) stock price is greater than the decline of the stock price
Summary
Every individual is likely to think about current needs, and for future needs that are full of uncertainty. Each individual thinks about their economic needs with investment activities, which is expected to generate greater profits for the future through some funds or other resources that have been invested. According to Hartono (2017), a capital market is a place between buyers and sellers with the possibility of profit and loss risk to increase long-term needs by selling stocks or issuing bonds. According to data from the Indonesia Stock Exchange (2019)a stock is a proof of ownership or ownership certificates about capital participation in a company or limited liability company. In this way, investors will have several claims to the company. The interest of the Indonesian society in investing has increased, on the other hand, Archives of Business Research (ABR)
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