Investment Management with Python and Machine learning Specialization lecture Notes Part-IV

This article will cover week 4 of the course and for the previous parts, please refer here. This week we will cover liability-driven investing, PSP portfolio (Performance Seeking Portfolio), and GHP (Goal-Hedging Portfolio) or Liability Heding Portfolio.

Let’s start with the fundamental concepts of Present values, Liabilities, and Funding Ratio

• Present Value: How much are you willing to pay for an asset now given that you will be paid $1 after the…