ESC
Web of Science
Entrepreneurship and Sustainability Issues Open Access Q1
Scopus - coverage starting with 2017 material
Received: 2019-03-10  |  Accepted: 2019-07-10  |  Published: 2019-09-30

Title

Efficient portfolio composition of Indonesian Islamic bank financing


Abstract

The purpose of this research is to determine the composition of an efficient portfolio in the financing of ten Islamic banks. The theory of efficient portfolio by Markowitz is a modern portfolio theory used for analyzing the combination of various investment instruments to form efficient portfolio points at efficient frontier lines. The efficient composition portfolio measurement of Islamic bank in this study uses return, standard deviation, variance-covariance, correlation coefficient, and variation coefficient of investment instruments between 2011 and 2015. This study uses quantitative research achieved using Microsoft Excel. The result of this research shows that the average composition of an efficient portfolio of each Islamic bank is as follows: 48.62% for Mudharabah-Musyarakah, 41.63% for Murabahah, 8.03% for Ijarah, and 8.31% for Istishna. It can be seen that Mudharabah-Musyarakah and Murabahah are more dominant than the other financing types.


Keywords

return, standard deviation, efficient portfolio, efficient frontier, Indonesia


JEL classifications

Z23 , Z29


URI

http://jssidoi.org/jesi/article/351


DOI


Pages

34-43


Funding


This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Laila, Nisful
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Saraswati, Karina Ayu
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Kholidah, Himmatul
Airlangga University, Surabaya, Indonesia http://www.unair.ac.id
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Journal title

Entrepreneurship and Sustainability Issues

Volume

7


Number

1


Issue date

September 2019


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

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References