Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange)
Investment is a tool for investors to get more profit than what has been invested. Investors must be able to predict the possibilities that occur when investing. Capital Asset Pricing Model is a tool to predict the development of investment in a particular company used to calculate and determine th...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia, Faculty of Business and Economics, Department of Management
2021-08-01
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| Series: | Asian Management and Business Review |
| Subjects: | |
| Online Access: | https://journal.uii.ac.id/AMBR/article/view/19802 |
| _version_ | 1797731142598656000 |
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| author | Ahmad Musodik Arrum Puspita Sari Ida Nur Fitriani |
| author_facet | Ahmad Musodik Arrum Puspita Sari Ida Nur Fitriani |
| author_sort | Ahmad Musodik |
| collection | DOAJ |
| description |
Investment is a tool for investors to get more profit than what has been invested. Investors must be able to predict the possibilities that occur when investing. Capital Asset Pricing Model is a tool to predict the development of investment in a particular company used to calculate and determine the Expected Return in minimizing risk investments. The authors conducted research using a sample of 5 companies in the automotive industry, namely PT Astra International Tbk, PT Indokordsa Tbk, PT Indomobil Sukses Internasional Tbk, PT Astra Otoparts Tbk, and PT Gajah Tunggal Tbk. This study uses a descriptive quantitative approach with Microsoft Excel 2016 analysis tools. This study aims to determine Portfolio Analysis with the Capital Asset Pricing Model (CAPM) approach which is used as the basis for making stock investment decisions in automotive industry sector companies listed on the Indonesia Stock Exchange. Use from the results of the analysis of the results by comparing the value of E(Ri) has a directly proportional relationship, meaning that the higher the value of, then the stock return (E(Ri)) will be high as well. Of the 5 companies, there are 2 companies that are in the Undervalued category and 3 companies that are in the overvalued category. This means that investors who will invest in companies engaged in the automotive industry can decide to buy shares of the companies PT Indomobil Sukses Internasional Tbk and PT Gajah Tunggal Tbk, because they are classified as undervalued. Meanwhile, investors who want to invest in shares are not advised to buy company shares that are in the overvalued category, but are advised to sell them to investors who already have shares in the company.
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| first_indexed | 2024-03-12T11:54:59Z |
| format | Article |
| id | doaj.art-323c961069c848559c25b981c2df1d2d |
| institution | Directory Open Access Journal |
| issn | 2775-202X |
| language | English |
| last_indexed | 2024-03-12T11:54:59Z |
| publishDate | 2021-08-01 |
| publisher | Universitas Islam Indonesia, Faculty of Business and Economics, Department of Management |
| record_format | Article |
| series | Asian Management and Business Review |
| spelling | doaj.art-323c961069c848559c25b981c2df1d2d2023-08-31T04:54:46ZengUniversitas Islam Indonesia, Faculty of Business and Economics, Department of ManagementAsian Management and Business Review2775-202X2021-08-011210.20885/AMBR.vol1.iss2.art8Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange)Ahmad Musodik0Arrum Puspita Sari1Ida Nur Fitriani2UIN Raden Mas Said Surakarta, Surakarta, IndonesiaUIN Raden Mas Said Surakarta, Surakarta, IndonesiaUIN Raden Mas Said Surakarta, Surakarta, Indonesia Investment is a tool for investors to get more profit than what has been invested. Investors must be able to predict the possibilities that occur when investing. Capital Asset Pricing Model is a tool to predict the development of investment in a particular company used to calculate and determine the Expected Return in minimizing risk investments. The authors conducted research using a sample of 5 companies in the automotive industry, namely PT Astra International Tbk, PT Indokordsa Tbk, PT Indomobil Sukses Internasional Tbk, PT Astra Otoparts Tbk, and PT Gajah Tunggal Tbk. This study uses a descriptive quantitative approach with Microsoft Excel 2016 analysis tools. This study aims to determine Portfolio Analysis with the Capital Asset Pricing Model (CAPM) approach which is used as the basis for making stock investment decisions in automotive industry sector companies listed on the Indonesia Stock Exchange. Use from the results of the analysis of the results by comparing the value of E(Ri) has a directly proportional relationship, meaning that the higher the value of, then the stock return (E(Ri)) will be high as well. Of the 5 companies, there are 2 companies that are in the Undervalued category and 3 companies that are in the overvalued category. This means that investors who will invest in companies engaged in the automotive industry can decide to buy shares of the companies PT Indomobil Sukses Internasional Tbk and PT Gajah Tunggal Tbk, because they are classified as undervalued. Meanwhile, investors who want to invest in shares are not advised to buy company shares that are in the overvalued category, but are advised to sell them to investors who already have shares in the company. https://journal.uii.ac.id/AMBR/article/view/19802Capital asset pricing modelbetaexpected returnovervaluedundervalued |
| spellingShingle | Ahmad Musodik Arrum Puspita Sari Ida Nur Fitriani Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) Asian Management and Business Review Capital asset pricing model beta expected return overvalued undervalued |
| title | Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) |
| title_full | Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) |
| title_fullStr | Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) |
| title_full_unstemmed | Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) |
| title_short | Investment decision by using Capital Asset Method Pricing Model (CAPM) (Case studies on five automotive companies listed in stock exchange) |
| title_sort | investment decision by using capital asset method pricing model capm case studies on five automotive companies listed in stock exchange |
| topic | Capital asset pricing model beta expected return overvalued undervalued |
| url | https://journal.uii.ac.id/AMBR/article/view/19802 |
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