A stock portfolio strategy in the midst of the COVID-19: Case of Indonesia
DOI:
https://doi.org/10.15549/jeecar.v9i3.822Keywords:
Active portfolio, Economic Value Added, Market Value Added, passive portfolioAbstract
Stock price movements are interesting to discuss, because from these price movements investors will get capital gains. Problems arose, however, when Covid-19 hit the world, especially in Indonesia. The purpose of this study, then, is to determine whether there is a relationship and difference in return and risk between Economic Value Added (EVA) and Market Value added (MVA) portfolios in the Indonesian stock market. The sample used is 24 stocks with daily stock return data for the 2015-2020 period. The results of the study found something new, namely that there was a relationship and difference between returns and risks in the EVA and MVA portfolios in Indonesia. In addition, the research succeeded in forming EVA and MVA portfolios that exceeded market returns in Indonesia. The best strategy that investors can apply in investing is to use an active strategy, especially during conditions, such as the Covid-19 pandemic, which have an impact on high market fluctuation.
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