Analysing Risk And Return Using The CAPM pdf

Analysing Risk And Return Using The CAPM

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Description of the Book:

This study aims to analyze stock returns and risks, as well as grouping efficient and inefficient stocks to make investment decisions using the Capital Asset Pricing Model (CAPM) model. This type of research is descriptive research with a quantitative approach. The sample used is a basic materials sector company sub-industry specialty chemicals during the period April 2023 – March 2024.The sample used was 7 shares of financial holdings industry companies determined by the researcher compare them with the actual rates of return in the corresponding periods to identify the valuation status of the stocks. Calculations using the CAPM model resulted in 4 efficient companies and 3 inefficient companies. Shares of OBM Drilchem Tbk (OBMD) are undervalued, because the value of individual returns (Ri) is higher at 0.65873 or 65.84%, with the resulting investment decision for efficient category stocks is to consider buying these shares at the lowest price at the current lowest price before increasing in the future.

While the shares of Argha Karya Prima Industry Tbk (AKPI), are inefficient stocks, because the value of individual returns (Ri) is lower at -0.50650 or -50.65%, the resulting investment decision for stocks with inefficient categories is to sell the shares at the highest price now and before experiencing a price decline in the

• Creator/s: Azzahra Angelina Resisna, Jerry Heikal
• Date: 4/4/2024
• Book Topics/Themes: Return, Risk, Capital Asset Pricing Model (CAPM), Invensment Decisions, IDX index

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