| An investor is expecting to have return from its investing activities so they could enjoy the increasing value of the acquired assets. The return from investment in shares is highly affected by the shares composition of its portfolio, in which shares showing increasing performance will raise the gain as a return from its investing capital.The objective of this research is to ascertain historical performance of 15 biggest market capitalization stocks at the Jakarta Stock Exchange for the period January 2002 -December 2007, where the performance of those stocks is represented in the form of combination of those 15 biggest stocks as a Composite Index (Indeks Harga Gabungan) to ilustrate the overal performance. To understand the historical performance of those stocks, the statistical approach will be used to prove whether the historical performance of 15 biggest market capitalization stocks during the research period is having certain pattern or just a have random movement. As a comparative object to the 15 biggest market capitalization stocks, this research will use IHSG (Indeks Harga Saham Gabungan) and LQ-45 (the most liquid stocks). The main reason to use IHSG and LQ-45 is due to both indexes are composed of stocks from diverse industries, thus having similar characteristics to the Composite Index of 15 biggest market capitalization stocks. Beside making performance comparison between Composite Index against IHSG and LQ-45, this research also identify whether the historical movement of the Composite Index is having similarity with IHSG and LQ-45. Afterward," the research will see how deep the corelation between Composite Index agains IHSG and LQ-45. |