International Journal of Research in Community Services
Vol 2, No 2 (2021)

Optimizing Stock Portfolio with Markowitz Method as a Reference for Investment Community Decisions

Viona Prisyella Balqis (Universitas Padjadjaran, Jl. Raya Bandung-Sumedang KM 21, Jatinangor, Sumedang, West Java Province, 45363, Indonesia)
Subiyanto Subiyanto (Universitas Padjadjaran, Jl. Raya Bandung-Sumedang KM 21, Jatinangor, Sumedang, West Java Province, 45363, Indonesia)
Sudradjat Supian (Universitas Padjadjaran, Jl. Raya Bandung-Sumedang KM 21, Jatinangor, Sumedang, West Java Province, 45363, Indonesia)



Article Info

Publish Date
06 Apr 2021

Abstract

An investor who wants to invest by avoiding risk makes investors tend to choose investments with the same expected return and the smallest or lowest possible risk. Therefore, investors expect to be able to maximize profits and minimize risk at the same time in investing. In a stock portfolio, it can be done by investing the funds owned by investors into several stocks so that it can reduce the risk of losses that will occur simultaneously. In choosing the right company to invest in with consideration of expected return and risk, a multi-objective optimization with multivariate objects can be used so that it can meet the expectations of investors. The portfolio concept introduced by Markowitz is a portfolio optimization intended for standard investors because it only refers to one explanation of portfolio returns. The Markowitz method can produce an optimal stock portfolio by considering the expected return and risk simultaneously so that the maximum profit can be obtained without eliminating the existing risk.

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Journal Info

Abbrev

ijrcs

Publisher

Subject

Economics, Econometrics & Finance Energy Engineering Social Sciences Other

Description

Community Services is an implementation activity of science, technology and cultural arts directly to the community institutionally through scientific methodology as a translation of the Tri Dharma of Higher Education,as well as the responsibility of scientists in efforts to develop community ...