Abstract
Macro economic indicators have a great effect on stock returns. The influence of these indicators can be positive or negative. Various research suggest that macro economic indicators such as changes in exchange rates and interest rates positive and negative give impact on stock returns. This study aims to determine the influence of macro economic factors such as exchange rates and interest rates on stock returns of the LQ-45 in 2010-2014 using Simple Regression Analysis and Multiple Regression Analysis. Samples done by using purposive sampling method of LQ-45 h are as many as 21 issuers. The findings show that the exchange rate indicates significant positive effect on stock returns LQ45. Interest rates significantly gives a negative effect on stock returns LQ45. The magnitude of the effect of exchange rate and interest rates on stock returns is 14.3%, which means there are many other factors that also may affect stock returns such as internal factors, inflation and others.
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