January 2020
Beginner to intermediate
432 pages
11h 24m
English
Content preview from Python for Finance Cookbook
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Finding the Efficient Frontier using Monte Carlo simulations
According to the Modern Portfolio Theory, the Efficient Frontier is a set of optimal portfolios in the risk-return spectrum. This means that the portfolios on the frontier:
- Offer the highest expected return for a given level of risk
- Offer the lowest level of risk for a given level of expected returns
All portfolios located under the Efficient Frontier curve are considered sub-optimal, so it is always better to choose the ones on the frontier instead.
In this recipe, we show how to find the Efficient Frontier using Monte Carlo simulations. We build thousands of portfolios, using randomly assigned weights, and visualize the results. To do so, we use the returns of four US tech companies ...
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.