Media Rosha
Portfolio picking is an important aspect in investmtent management. Before deciding what stock to pick, an investor will consider many aspect of the stock, the fundamental and the trend of the market. Knowing what to expect is an important science and art in investment. Expected value of perfect information - EVPI is the difference between two payoff that predicted to be the best of some certain condition. For portfolio management, we could employ Capital Asset Pricing Model to provide clearer view of each securities and using treynor ratio to optimize the investment result. Description in this paper about performance analysis of stocks in LQ-45 index in Indonesian Stock Index in 1-st quartil period of 2015, based on return and risk to reach the group of stocks which optimum using the model of Capital Asset Pricing Model (CAPM). Our finding suggests that using CAPM and Treynor Ratio analysis could optimize the portfolio outcome, while changing business and economic environment create limitation on the portfolio. © 2019 IOP Publishing Ltd.
Mathematics Department, Faculty of Mathematics and Natural Science, Universitas Negeri Padang, Jl. Prof. Hamka, Padang, Sumatera Barat, 25131, Indonesia
