Python Exercises for Corporate Finance and Risk Management

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Question: 88

Please refer to the previous question to answer this question. What is the correct the standard deviation of the portfolio (sdp)?

INSTRUCTIONS
  • Define a function with the name "standard_deviation ", which will take two arguments, investment proportion and given standard deviation in last question.
  • The signature of the function should be like:

    def standarddeviation(investment_proportions, sd_1):

  • Use the formula,

    Sd(p) = (sd_1*wi) where, sd_1 = given standard deviation wi = investment proportion/100



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