Investors aim to maximize the return rate for their own investment, utilizing various information as possible as they can access. However those investors, especially individual investors, have limitations of interpretation of the domain-specific information or even the acquisition of the information itself. Thus, individual investors tend to make decision affectively and frequently, which may cause a loss in returns. This study aims to analyze analysts’ target price and to suggest the strategy that could maximize individual’s return rate. Most previous literature revealed that the optimistic bias exists in the analysts’ target price and it is also confirmed in this study. In this context, this study suggests the upper limit of target rate of returns and the optimal value named ‘alpha(α)’ which performs the adjustment of proposed target rate to maximize excess earning returns eventually. To achieve this goal, this study developed an optimization problem using linear programming. Specifically, when the analysts’ proposed target rate exceeds 30%, it could be adjusted to the extent of 59% of its own target rate. As apply this strategy, the investors could achieve 1.2% of excess earning rate on average. The result of this study has significance in that the individual investors could utilize analysts’ target price practically.

1. 서 론
2. 애널리스트 보고서
    2.1 애널리스트 제시 목표주가의 예측정확성
    2.2 연구설계
3. 분석방법 및 결과
    3.1 자료수집 및 정제
    3.2 기초통계량
    3.3 단순 매도전략
    3.4 상한선 매도전략
4. 결 론
References

• Su-Ji Cho(단국대학교 경영학부) | 조수지
• Heung-Kyu Kim(단국대학교 경영학부) | 김흥규
• Ki-Kwang Lee(단국대학교 경영학부) | 이기광 Corresponding Author