Elementwise operations on arrays
Arrays allow for efficient numerical manipulation of its elements. Let's explore element-wise mathematical operations by calculating price to earnings ratio using two arrays, prices_array and earnings_array from the previous exercise.
This price to earnings ratio, or PE ratio, is a financial indicator of the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings.
prices_array and earnings_array are available in your workspace.
This exercise is part of the course
Introduction to Python for Finance
Exercise instructions
- Import
numpyasnp. - Create
pe_arrayby dividingprices_arraybyearnings_array.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Import numpy as np
____
# Create PE ratio array
pe_array = ____
# Print pe_array
print(____)