Exercise

# Comparing approaches

In this exercise, you're going to investigate whether the **maximum Sharpe portfolios differ** when you are using the normal historic expected risk and returns, and when using the exponentially weighted risk and returns. You saw during the video that the exponentially weighted volatility follows the real volatility much closer, but do you actually see a big difference in the portfolio weights when using one, or the other? That's what you'll find out.

The exponentially weighted risk and return have been calculated using a **span of 252 trading days**, so it looks back through a maximum period of a year. Available for you are: `cleaned_weights_maxsharpe`

, `perf_max_sharpe`

, `cleaned_weights_maxsharpe_EW`

, `perf_max_sharpe_EW`

. The `_EW`

part stands for exponentially weighted.

Instructions 1/3

**undefined XP**

- Print and inspect the weights of both the normal maximum Sharpe portfolio, and then the weights of the exponentially weighted portfolio.