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Business entities often face bankruptcy risks due to various factors, including accounting errors, limited experience, or small-cap transactions. The COVID-19 pandemic exacerbated financial conditions for many companies, such as PT Garuda Indonesia (Persero) Tbk., which experienced a significant revenue decline. Additionally, individuals may face bankruptcy due to reasons like job termination or business failures. The primary cause of bankruptcy lies in the imbalance between debt and income, often worsened by poor financial planning. Government regulations can help mitigate bankruptcy risks, such as through health insurance and credit restrictions. The bankruptcy process aims to provide fair resolutions between debtors and creditors while safeguarding public interests. Bankruptcy can also offer debtors the opportunity to restructure their debt, maintain economic stability, and prevent social loss. In practice, bankruptcy involves the management of the debtor's assets by a trustee and the proportional distribution of proceeds to creditors. The application of freedom of contract and legal certainty principles in debtor-creditor relationships is crucial to ensuring a transparent, efficient, and equitable process.

This study aims to find out how much expected return and optimal portfolio risk and the best model between the Markowitz model and the single index model in forming optimal portfolios in banking sub-sector companies for the 2018-2022 period. This type of research includes applied quantitative descriptive. The research data uses secondary data in the form of stock closing prices, JCI and monthly BIC interest rates. The survey population is 29 companies. Data analysis uses the Markowitz model and single index model. The results showed that the stocks that make up the optimal portfolio with the Markowitz model are 12 company stocks that provide an expected return of 1.41%, an absolute risk of 4.48%, and a relative risk of 318.96%. While the single index model consists of 10 company stocks that provide an expected return of 4.65%, an absolute risk of 10.21%, and a relative risk of 219.68%. The research results are expected to contribute to investors, that the single index model is better than the Markowitz model.