The Influence Of Crude Oil Price, Coal Price And Us Dollar Strengthening Upon Optimum Portfolio Return In Mining Company (An Empirical Study of Indonesian Mining Companies in Indonesian Stock Exchange)

Abstract

A good investment is better done by considering several factors that can affect the risk and return. There are methods to construct optimum portfolio of investment in order to avoid high risk but maximize the return, one of them is single index method that is used in this research. The purpose of this study was to determine the influence of crude oil price, coal price, and dollar strengthening reflected from exchange rate upon optimum portfolio return. To analyze the results, this study utilized multiple regressions. The data of this research are classified as quantitative secondary data using daily share price of mining companies that has been calculated by single index method from 2016 until 2019. This research result found that crude oil price and coal price have significant positive influence upon optimum portfolio return, while exchange rate has been proven to have negative influence to the optimum portfolio return but it is not significant