import matplotlib.pyplot as plt
import numpy as np
import pandas as pd
import pandas_datareader as pdr
import yfinance as yfMcKinney Chapter 11 - Practice - Blank
FINA 6333 for Spring 2025
%precision 4
pd.options.display.float_format = '{:.4f}'.format
# %config InlineBackend.figure_format = 'retina'Announcements
Five-Minute Review
Practice
Download daily returns for ten portfolios formed on book-to-market ratios
Plot cumulative returns for all available data
Calculate total returns for each calendar year
Calculate total returns for all 252-trading-day windows
Calculate total returns for 12-months windows with monthly data
Calculate Sharpe Ratios for each calendar year
Calculate rolling betas
We can calculate CAPM betas as: \(\beta_i = \frac{Cov(r_i - r_f, r_M - r_f)}{Var(r_M - r_f)}\)