Abstract :
To consider how big is a business risk is when investing is dominant factor
that can not be neglected. Some business risk can be omitted through diversification
although some are not total loss risk, however, through diversification ; that is
systematic risk.
This research is intended to identify the effectiveness of return on asset
(ROA), financial leverage and size firm to beta stock. it uses 21 listed banks in
Indonesian Stock Exchange from periode of 2004 to 2006 as research samples.
individually, the outcomes of beta stock on this research proves that ROA variables
have positive correlation to beta stock on most of its regression model, however, the
variables have less positive correlation when using 5% level. Nevertheless, these
financial leverage measurement using beta stock appear lo affect risks on investors
rather than it affects with ROA.