Section 2. Chapitre 3
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Challenge: Portfolio Return and Risk Calculation
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You are given a DataFrame of monthly returns for four assets and a list of portfolio weights. Complete the following steps:
- Calculate the portfolio's monthly returns using the given weights;
- Compute the average monthly return of the portfolio;
- Calculate the volatility (standard deviation) of the portfolio's monthly returns;
- Calculate the Sharpe Ratio for the portfolio, assuming a risk-free rate of 0.5% per month;
- Print a summary of the calculated metrics, including the average monthly return, volatility, and Sharpe Ratio, each on a separate line.
Use only the libraries provided in the starter code. Do not modify the given data or weights.
Solution
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Section 2. Chapitre 3
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