OPTIMAL PORTFOLIO CRITICAL REVIEW OF BASIC MATERIAS SECTOR SHARES ON THE IDX USING THE MARKOWITZ APPROACH

Abstract

This study aims as a critical study of optimal portfolio formation using the Markowitz model on basic materials sector stocks on the Indonesia Stock Exchange. The population in this study are all stocks in the basic materials sector based on the distribution of IDX IC on the Indonesia Stock Exchange for the period October 2021 - March 2022, namely 93 shares, while the sample is 71 shares. Data analysis was carried out using the stages of the Markowitz model which began by collecting stock price data per day during the study period, calculating realized return, expected return, variance, standard deviation, covariance, to obtain the optimal portfolio with risk and expected return. The research results show that.