Aplikasi Capital Asset Pricing Model dalam Evaluasi Kelayakan Investasi Daerah

  • Harijono Harijono
  • Ari Budi Kristanto
  • Apriani Dorkas Rambu Atahau
Keywords: Capital Budgeting, Local Government Investment, CAPM, Cost of Capital


Regional autonomy encourages local governments to invest as a means of increasing regional economic growth. In order to evaluate regional investment decisions it is necessary to carry out a capital budgeting analysis. Capital Asset Pricing Model is a method of calculating the cost of capital in investment analysis which is widely used in the business world. This study aims to examine the CAPM application in regional investment decisions. By using secondary data from financial reports and hypothetical auditors' reports for the period 2012-2017, the results show that CAPM can be used in making regional investment decisions. Thus, the investment feasibility analysis of local governments can use CAPM because CAPM as an evaluation tool will provide the objectivity of the assessment necessary so that the investment decisions taken are correct


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