-
Return and Variance 7
-
Lecture1.1
-
Lecture1.2
-
Lecture1.3
-
Lecture1.4
-
Lecture1.5
-
Lecture1.6
-
Lecture1.7
-
-
Solving Equations 5
-
Lecture2.1
-
Lecture2.2
-
Lecture2.3
-
Lecture2.4
-
Lecture2.5
-
-
Capital Allocation Line 6
-
Lecture3.1
-
Lecture3.2
-
Lecture3.3
-
Lecture3.4
-
Lecture3.5
-
Lecture3.6
-
-
Diversification 3
-
Lecture4.1
-
Lecture4.2
-
Lecture4.3
-
-
Investment Sets 3
-
Lecture5.1
-
Lecture5.2
-
Lecture5.3
-
-
Portfolios 7
-
Lecture6.1
-
Lecture6.2
-
Lecture6.3
-
Lecture6.4
-
Lecture6.5
-
Lecture6.6
-
Lecture6.7
-
-
Capital and Security Market Lines 3
-
Lecture7.1
-
Lecture7.2
-
Lecture7.3
-
-
Arbitrage 3
-
Lecture8.1
-
Lecture8.2
-
Lecture8.3
-
-
Dividend Discount Model 2
-
Lecture9.1
-
Lecture9.2
-
-
Fixed Income 4
-
Lecture10.1
-
Lecture10.2
-
Lecture10.3
-
Lecture10.4
-
-
Duration and Immunization 4
-
Lecture11.1
-
Lecture11.2
-
Lecture11.3
-
Lecture11.4
-
Solution
Solution
def twoChoice2(ret1,ret2,var1,var2,cov,goalVar):
varEquation = sympy.Eq(goalVar,p1**2*var1+p2**2*var2+2*p1*p2*cov)
totalPercent = sympy.Eq(1,p1+p2)
dictionaries = sympy.solve((varEquation,totalPercent))
best = [1,0,0]
for dictionary in dictionaries:
percent1 = dictionary[p1]
percent2 = dictionary[p2]
ret = percent1*ret1+percent2*ret2
if ret>best[2]:
best = [percent1,percent2,ret]
print("Put "+str(best[0]*100)+"% in asset 1.")
print("Put "+str(best[1]*100)+"% in asset 2.")
print("Your return will be "+str(best[2]))
twoChoice2(.03,.09,.05,.07,.03,.045)
Source Code
Next
Introduction