The Data Set Suppose that we have file, AAPL.csv in a data folder. Reading from a CSV File with Python Using a csv.DictReader iterator object instead of the standard csv.reader object. Calculate the mean of the Apple closing stock Reading from a CSV File with pandas Use pandas to work with the Apple stock price…
Any algorithmic trading strategy should entail the following: It should be a model based on an underlying market theory since only then can you find its predictive power. Fitting a model to data with great backtesting results is simple, but usually does not provide sound predictions. It should be as simple as possible – the…
55 Questions (About 15 Questions on exam) Reference: 1. The nominal risk-free rate is best described as the sum of the real risk-free rate and a premium for: A. maturity. B. liquidity. C. expected inflation. C is correct. The nominal risk-free rate is approximated as the sum of the real risk-free interest rate and an inflation premium.…
Risk transfer is the process of passing on a risk to another party, often, but not always, in the form of an insurance policy. Risk Shifting
Risk Prevention and Avoidance Risk Acceptance: Self-Insurance and Diversification
Drivers Metrics
Financial Risks Non-Financial Risks
Risk budgeting picks up where risk tolerance leaves off. Whereas risk tolerance focuses on the appetite for risk and what is and is not acceptable, risk budgeting has a more specific focus on how that risk is taken. Risk budgeting quantifies and allocates the tolerable risk by specific metrics; it extends and guides implementation of the…
