Sectionย 3. Chapterย 5
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Challenge: Predict Asset Returns with Linear Regression
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Task
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You are given a DataFrame containing daily returns for two assets and the market. Your task is to build a linear regression model to predict the returns of Asset_A using Asset_B and Market returns as features.
- Implement the function
predict_asset_returns(df). - Use
Asset_BandMarketcolumns as input features (X), andAsset_Aas the target variable (y). - Fit a linear regression model using scikit-learn's
LinearRegression. - Use the model to predict Asset_A returns for the same input data.
- Return the predictions as a numpy array.
- Print the predictions after calling your function.
Solution
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Sectionย 3. Chapterย 5
single
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