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  3. Analyzing Financial Statements in Python

Exercise

Practice making heat maps

Heat maps are a great way to visualize correlations between various financial ratios. They can be used to see which ratios correlate strongly with profitability ratios and thus aid us in deciding which companies to invest in.

In this exercise, you'll practice making heat maps. A pandas DataFrame merged_dat has been loaded for you with some ratios already computed. pandas and Seaborn have been loaded with the aliases pd and sns.

Instructions 1/3

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  • Use merged_dat with the selected columns to make a correlation matrix.