Computational Mathematics of Risk and Return Portofolio Banking (Ramadhan Effect 2024)

Financial engineering combines a rigorous study of computational mathematics with economics and quantitative finance. This research was conducted to analyze the level of risk and return of banking stock portfolios after the Ramadan effect. This research uses a descriptive event study method by calculating the 3 most profitable stocks in the banking sector to be used as a portfolio with a weight of 33% each. The results showed that the expected return for the banking portfolio was 0.27% and the predicted risk in the next period was 1.46%. These results have been calculated carefully to provide an illustration that investors who want to buy a portfolio of banking shares do not need to worry about future returns