Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Optimal Portfolio Formation with Combination of LQ45 Stocks and Corporate Bonds
Dublin Core
Title
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Optimal Portfolio Formation with Combination of LQ45 Stocks and Corporate Bonds
Optimal Portfolio Formation with Combination of LQ45 Stocks and Corporate Bonds
Subject
Markowitz; optimal portfolio; LQ45 Index; Graham; Corporate Bonds
Description
The objective of investors to invest their money was to maximize return, although they were subject to constraints, primarily risk, so this study aims to provide an alternative to the formation of portfolios and corporate bonds to obtain optimal returns with acceptable risk. The alternative model is to combine Graham's stock selection model with the formation of an optimal portfolio model, namely the Markowitz model. The results of the selection using the Graham model of defensive investors and aggressive investors are 9 and 13 stocks, respectively, of the 45 stocks listed on the LQ45 index. From the selected stocks, the optimal portfolio is formed using the Markowitz model. The results show that the Markowitz model optimizing portfolio provides better performance (reward to variability ratio) than the LQ45 portfolio index with a yield difference of 13.68 – 20.24% per year.
Furthermore, the selection of corporate bonds for the optimal portfolio resulted in 8 corporate bonds with a portion of each bond, and this portfolio can generate rates of 8.88% per annum.
Furthermore, the selection of corporate bonds for the optimal portfolio resulted in 8 corporate bonds with a portion of each bond, and this portfolio can generate rates of 8.88% per annum.
Creator
Arditya Soraya
Source
DOI: 10.26905/jkdp.v25i4.6381
Publisher
Universitas Merdeka Malang
Date
October 2021
Contributor
Sri Wahyuni
Rights
ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)
Format
PDF
Language
English
Type
Text
Coverage
Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Files
Collection
Citation
Arditya Soraya, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Optimal Portfolio Formation with Combination of LQ45 Stocks and Corporate Bonds,” Repository Horizon University Indonesia, accessed April 3, 2025, https://repository.horizon.ac.id/items/show/4819.
Optimal Portfolio Formation with Combination of LQ45 Stocks and Corporate Bonds,” Repository Horizon University Indonesia, accessed April 3, 2025, https://repository.horizon.ac.id/items/show/4819.