Optimal Portfolio Using Roy’s Safety-First Method on Primary Consumer Goods Sector Stocks

Estu Putri Dianti (Mathematics Undergraduate Study Program, Faculty of Mathematics and Natural Science, Universitas Padjadjaran, Sumedang, Indonesia)
Riaman Riaman (Department of Mathematics, Faculty of Mathematics and Natural Science, Universitas Padjadjaran, Sumedang, Indonesia)
Sukono Sukono (Department of Mathematics, Faculty of Mathematics and Natural Science, Universitas Padjadjaran, Sumedang, Indonesia)

International Journal of Quantitative Research and Modeling
Vol. 5 No. 1 (2024): International Journal of Quantitative Research and Modeling

Before carrying out investment activities, investors need to form an optimal investment portfolio. This study aims to form an optimal portfolio in primary consumer goods sector stocks that sell the basic needs of the community so that stocks in the sector tend to be stable. The method used in forming the optimal portfolio is Roy's Safety-first method. The portfolio formed produces 6 combinations of stocks consisting of WIIM, DSNG, MRAT, CAMP, SIMP, and MBTO stocks respectively with a proportion of funds of 44.05%, 16.38%, 18.61%, 15.06%, 4.32%, and 1.59% with an expected return portfolio of 3.10% and a portfolio risk of 1.65%.