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Leer Challenge: Simulate and Visualize Portfolio Diversification | Investment Metrics and Portfolio Analysis
Python for Investors

bookChallenge: Simulate and Visualize Portfolio Diversification

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You are given simulated daily returns for three assets over a year. Your task is to simulate a diversified portfolio using these assets, compute relevant diversification metrics, and visualize the results.

  • Calculate the daily portfolio returns as a weighted sum of the individual asset returns using the provided weights.
  • Compute the mean and standard deviation of the simulated portfolio returns.
  • Plot a histogram of the daily portfolio returns and display the plot.
  • Do not change the provided random seed, asset returns, or portfolio weights.
  • Use only the allowed libraries for your calculations and visualization.

Oplossing

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Sectie 2. Hoofdstuk 7
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bookChallenge: Simulate and Visualize Portfolio Diversification

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Taak

Swipe to start coding

You are given simulated daily returns for three assets over a year. Your task is to simulate a diversified portfolio using these assets, compute relevant diversification metrics, and visualize the results.

  • Calculate the daily portfolio returns as a weighted sum of the individual asset returns using the provided weights.
  • Compute the mean and standard deviation of the simulated portfolio returns.
  • Plot a histogram of the daily portfolio returns and display the plot.
  • Do not change the provided random seed, asset returns, or portfolio weights.
  • Use only the allowed libraries for your calculations and visualization.

Oplossing

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Was alles duidelijk?

Hoe kunnen we het verbeteren?

Bedankt voor je feedback!

Sectie 2. Hoofdstuk 7
single

single

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