Abstract :
Thepurposeofthisresearchistoknowwhetersomestocksisworthyornottobebought.TheobjectiveofthisresearchistofindouttheinvestmentadvisabilityofconsumergoodsindustrystocksinIndonesiaStockExchange.TheobjectofthisresearchisstockwhichlistedinIndonesiaStockExchange(BEI).Thewritertakesexampleof30stocksofconsumergoodsindustryastheobjectoftheresearch.Theresearch?speriodisfromJanuary2005uptoDecember2007.ThemethodbeingusedinthisresearchisCapitalAssetPricingModel(CAPM).
TheresultoftheCAPMmodel,itisfoundthatthereare20undervaluestocksand10overvaluestocksinconsumergoodsindustryinaresearch?speriod
Keywords:requiredofreturn,beta,expectedreturn,capitalassetpricingmodel