Active return
In this first exercise, you're going to calculate the active return of a portfolio that's managed against a benchmark. You've learned many ways of how to calculate total return over a period. For this exercise, you'll use the simple mean returns multiplied with the weights to obtain a total return for both the portfolio as well as the benchmark. Available is portfolio data containing weights and asset returns under portfolio_data
. Have a look at the data by running portfolio_data.head(10)
in the IPython Shell. Good luck!
This exercise is part of the course
Introduction to Portfolio Analysis in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Check the portfolio weights
print(portfolio_data.____.____())