Consider a portfolio S with expected return (rs) of 15% and a standard deviation (sd) of 16%. Consider a risk-free asset (T-Bill) with interest rate (rf) of 5%. Compute the correct interval for expected return on a portfolio (rp) with investment proportions ( wi's) of 50% in each of these assets.
The signature of the function should be like:
def expected_returns(expacted_return_s, interest_rate, investment_proportions):
Since investment proportion is 50% take values of wi 0.5.
Use the following formula to get the value of expected returns:
Expected returns = (wirs + wirf)
Note - Having trouble with the assessment engine? Follow the steps listed here
Loading comments...