Consider a portfolio with the following weights w,  expected…

Consider a portfolio with the following weights w,  expected return on each risky asset ER, and covariance matrix Cov below. w = np.array([0.05, 0.03]) ER = np.array([0.10, 0.02])Cov = np.cov([[0.004, 0.0156], [0.0156, 0.009]]) Which of the following expressions represents the portfolio volatility in Python?

Consider the code below with numbered lines:1)def h(x): 2) r…

Consider the code below with numbered lines:1)def h(x): 2) return np.exp(-x**2 / 2) / np.sqrt(2 * np.pi) 3) 4)x = np.linspace(-4, 4, 51) 5)y = np.zeros(x) 6) 7)for i in range(len(y)-1): 8) y[i] = h(x[i]) 9)plt.plot(x, y) If we run the code above, we will receive an error. In which line lies the error?

Assume we download the stock price of Tesla and compute its…

Assume we download the stock price of Tesla and compute its return using the command  startdate = ‘2019-01-01’ enddate = ‘2021-01-01’ tesla = web.get_data_yahoo(“TSLA”, startdate, enddate)R_tesla = tesla[‘Adj Close’].pct_change().dropna() Which of the following commands is used to compute the volatility of Tesla returns?  

Consider an economy with three possible states: bad, normal,…

Consider an economy with three possible states: bad, normal, and good. The probability of each state is given in the array of probabilities “p”  below. The payoff of a risky stock in each state is given in the array R.  p = np.array([0.1, 0.6, 0.3]) R = np.array([[0.05], [0.03], [-0.02]]) If we want to compute the expected return on this risky asset, what is the command line we should execute in Python?