Abstract
The purpose of this research is to determine the optimal portfolio for manufacturing entities listed on the Indonesian Sharia Stock Index based on a single index model test. The population of this research is manufacturing entities that have been listed in the Indonesian Sharia Stock Index on the Indonesia Stock Exchange for the Period 2019-2020. This study uses a purposive sampling technique using several criteria. Based on this technique, 31 entities meet the criteria. The results showed that the expected return was 5.65%, and the possible risk was 0.22% for 15 (fifteen) stocks included in the optimal portfolio category.
Highlights
Investment is growing because of the support from public awareness in investing as the needs for future anticipation and the ease of service for growing investments. Tumewu (2019) stated that the desire of Indonesians to invest is relatively low compared to people in other countries
To obtain an optimal portfolio, stock selection can be analyzed using the Markowitz model or a single index based on the level of investor desire to get the expected return and the risk that will be borne by each portfolio choice (Tandelilin, 2001)
The population in this study is the entire stock of manufacturing entities listed on the Indonesia Sharia Stock Index, which are listed on the Indonesia Stock Exchange from January 2019 to January 2020
Summary
Investment is growing because of the support from public awareness in investing as the needs for future anticipation and the ease of service for growing investments. Tumewu (2019) stated that the desire of Indonesians to invest is relatively low compared to people in other countries. Indonesia has experienced a relatively better investment development viewed from the increasing public awareness to invest from various backgrounds and ages. Movanita (2019) reported 1.9 million investors in the capital market as of May. Indonesia has experienced a relatively better investment development viewed from the increasing public awareness to invest from various backgrounds and ages. Movanita (2019) reported 1.9 million investors in the capital market as of May It proves that public interest in delaying consumption and utilizing their funds for investment in the capital market is relatively high compared to the previous year. To obtain an optimal portfolio, stock selection can be analyzed using the Markowitz model or a single index based on the level of investor desire to get the expected return and the risk that will be borne by each portfolio choice (Tandelilin, 2001). International Journal of Research in Business and Social Science (2147- 4478), 10(8)
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