Navigating Uncertainty: Using CAPM to Invest in LQ45 Index Stocks During the Pandemic

Abstract

The Capital Asset Pricing Model (CAPM) is often used by investors in making investment decisions. This study aims to determine the Capital Asset Pricing Model for determining investment in LQ45 Index stocks before the pandemic and during the pandemic. The method used in this study is descriptive comparative with a quantitative approach. The data used is data in the form of annual financial reports (annual report) for the LQ45 Index before the pandemic (2018-2019) and during the pandemic (2020-2021). The Capital Asset Pricing Model can be used to determine investment in LQ45 Index Shares.