Question: Question 1 (10 points] Using python, chose three stocks of choice from yahoo finance, pick the ad- justed closing price for the past two years
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Question 1 (10 points] Using python, chose three stocks of choice from yahoo finance, pick the ad- justed closing price for the past two years for each stock. Create a numpy matrix such that the dates are the rows of the matrix, and columns are the stock prices for each stock. Call this matrix S Take C=STs. This should be a 3 x 3 matrix. By hand, find the eigenvalues and eigen vectors for this matrix. Use the command result = numpy.linalg.eig(C) to verify your answers. What can you say about the eigenvalues? Now pick an additional 7 stocks of your choice (total of 10 stocks). Find the log returns of each. Which 3 stocks would you chose to invest in the future for the highest gains? Use the results of the eigenvalue decomposition in Python) to provide justifications for your answer. Question 1 (10 points] Using python, chose three stocks of choice from yahoo finance, pick the ad- justed closing price for the past two years for each stock. Create a numpy matrix such that the dates are the rows of the matrix, and columns are the stock prices for each stock. Call this matrix S Take C=STs. This should be a 3 x 3 matrix. By hand, find the eigenvalues and eigen vectors for this matrix. Use the command result = numpy.linalg.eig(C) to verify your answers. What can you say about the eigenvalues? Now pick an additional 7 stocks of your choice (total of 10 stocks). Find the log returns of each. Which 3 stocks would you chose to invest in the future for the highest gains? Use the results of the eigenvalue decomposition in Python) to provide justifications for your
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