Скачать или смотреть Chapter 4 Understanding Risk and Return

Download the source code from here:
https://onepagecode.substack.com/
What are the two most important questions every investor asks? "How much can I make?" and "How much could I lose?" This chapter from "Quantitative Trading Strategies Using Python" lays the essential groundwork for answering them by diving into the core concepts of Risk and Return. 📈

Learn how to properly calculate and analyze an investment's performance, moving beyond simple price changes to understand compounding, terminal returns, and the crucial process of annualizing returns for fair comparisons. We then demystify risk by breaking down volatility, explaining what variance and standard deviation truly represent.

Most importantly, you'll learn how to combine these two concepts using the industry-standard Sharpe Ratio to measure risk-adjusted performance. The chapter culminates in a hands-on Python walkthrough where we download real stock data for Apple (AAPL) and Google (GOOG) and calculate all of these key metrics from scratch. This is a foundational guide for anyone serious about finance and investing.

#Finance101 #Investing #RiskManagement #QuantitativeFinance #SharpeRatio #PythonForFinance