Title:
THROUGH THE PORTFOLIO FORMATION IN BANKING INDUSTRY: INSIGHT THE MODEL OF MARKOWITZ

Authors:
Budi, Wirawan Panoedjoe Soebagyo and Wilhelmus H S*

Abstract:
Investment is considered to have an important role in today's dynamic environment and the hobby of investing is growing from day to day. In the modern era, many opportunities are available for investors to invest. But according to the investment decision concerned, it depends on different things but there is no denying the fact that risk and return play an important role in making investment decisions. The method usually used by investors in diversifying is through portfolio formation. This research was conducted on the capital market index, namely IDX30 for the period December 2019-September 2020. Portfolios were formed using the Markowitz model, the data in this study were sourced from the IDX Monthly Statistic or the Indonesia Stock Exchange. Research is carried out to form the Issuer's shares into an optimal portfolio and the proportion of funds from each share formed using the Markowitz method. From these calculations, the results of the 3 most optimal share issuers, namely PT Bank Rakyat Indonesia AgroniagaTbk or AGRO with a proportion of 43%, BBHI or PT Bank Harda International Tbk got a proportion of 44% and the last is PT BTPN Syariah Tbk or BTPS getting a proportion by 13%. With the combination of these three stocks, it has a fairly large portfolio return expectation but also has a large portfolio risk. Expected Return Portfolio is 11.49% and a risk of 7.12%.

Keywords:
Optimal Portfolio, Stocks and Markowitz Method