Portfolio Diversification in Reducing Investment Risk
1Ni Kadek Wahyuni Merta Sari, 2Noni Antika Khairunnisah, 3Muhammad Mahfuz
1,2,3Akademi Bisnis Lombok
https://doi.org/10.47191/jefms/v7-i10-35ABSTRACT:
This study analyzes the role of green bonds in portfolio diversification and green bonds can help reduce risk without sacrificing expected returns. The data used are historical data on stock prices and green bonds traded on the IDX for a period of 7 years, namely from 2018 to 2024. The analysis method used is descriptive analysis, t-student test, ANNOVA test and multiple linear regression. The results of the study show that green bonds play an important role in portfolio diversification. As an instrument that has lower volatility compared to stocks, green bonds allow investors to reduce risk without sacrificing significant returns.
KEYWORDS:
Green Bonds, Stocks, Return, Risk, Diversification
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