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Python for Finance

You're reading from   Python for Finance Apply powerful finance models and quantitative analysis with Python

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Product type Paperback
Published in Jun 2017
Publisher
ISBN-13 9781787125698
Length 586 pages
Edition 2nd Edition
Languages
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Author (1):
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Yuxing Yan Yuxing Yan
Author Profile Icon Yuxing Yan
Yuxing Yan
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Table of Contents (17) Chapters Close

Preface 1. Python Basics FREE CHAPTER 2. Introduction to Python Modules 3. Time Value of Money 4. Sources of Data 5. Bond and Stock Valuation 6. Capital Asset Pricing Model 7. Multifactor Models and Performance Measures 8. Time-Series Analysis 9. Portfolio Theory 10. Options and Futures 11. Value at Risk 12. Monte Carlo Simulation 13. Credit Risk Analysis 14. Exotic Options 15. Volatility, Implied Volatility, ARCH, and GARCH Index

Exercises

  1. What is the meaning of CAPM? Is it a linear model?
  2. What are the features of a one-factor linear model?
  3. What are the definitions of total risk and market risk and do you measure them?
  4. Explain the similarity and difference between the following two equations:
    Exercises
  5. What is the relationship between total risk and market risk for a stock?
  6. Who should care about CAPM or what are the usages of the model?
  7. If stock A has a higher market risk than stock B, does it mean that A has a higher expected return as well? Explain.
  8. How do you measure different types of risk?
  9. How do you predict the expected market returns?
  10. If we know the expected market risk premium, how do you predict the cost of equity of a firm?
  11. What is the logic behind the following beta adjustment formula?
    Exercises
  12. Construct a portfolio with unequal weight of 20%, 10%, 30%, 10%, 10%, and 20%. The list of stocks are Walmart (WMT), International Business Machine (IBM), Citi Group (C ), Microsoft (MSFT), Google (GOOG), and Dell (DELL). Estimate their monthly...
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