The effect of diversification
In this exercise you're going to compare performance of four individual stocks, to a portfolio of the same four stocks. You'll see that 2 out of the four stocks will under-perform over a time period of roughly four years, and two will perform quite well.
The stocks you're going to investigate are General Electric, JP Morgan, Microsoft and Proctor & Gamble.
Let's play a little game: pick one stock to invest in, then, let's see how it would have performed over time. There's a 50-50 chance that you'll pick a winning stock, versus a losing stock. Let's look at the data and see whether your stock is one of strong performers.
Available is a data set called stock_returns containing the cumulative returns of these four stocks over time, plus a portfolio of these stocks.
Deze oefening maakt deel uit van de cursus
Introduction to Portfolio Analysis in Python
Praktische interactieve oefening
Probeer deze oefening eens door deze voorbeeldcode in te vullen.
# Check beginning and end of dataset
print(stock_returns.____())
print(stock_returns.____())