Challenge: Calculate Daily Returns
Understanding how a stock's price changes from one day to the next is crucial for anyone working in finance. One of the most common ways to measure these changes is by calculating daily returns. A daily return tells you the percentage change in a stock's price compared to the previous day's closing price. This measure helps you assess how volatile a stock is, compare performance across different assets, and even build more advanced financial models. By expressing returns as percentages, you can easily compare stocks with different price levels, making it a fundamental metric for both analysis and reporting in the world of finance.
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Implement a function that receives a list of daily closing prices for a stock and returns a list of daily percentage returns, rounded to four decimal places.
- For each day after the first, calculate the percentage change from the previous day's price.
- Round each daily return to four decimal places.
- Return a list containing these daily returns.
Oplossing
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Can you explain how to calculate daily returns with an example?
Why are daily returns preferred over absolute price changes?
How can daily returns be used to assess risk or volatility?
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Challenge: Calculate Daily Returns
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Understanding how a stock's price changes from one day to the next is crucial for anyone working in finance. One of the most common ways to measure these changes is by calculating daily returns. A daily return tells you the percentage change in a stock's price compared to the previous day's closing price. This measure helps you assess how volatile a stock is, compare performance across different assets, and even build more advanced financial models. By expressing returns as percentages, you can easily compare stocks with different price levels, making it a fundamental metric for both analysis and reporting in the world of finance.
Swipe to start coding
Implement a function that receives a list of daily closing prices for a stock and returns a list of daily percentage returns, rounded to four decimal places.
- For each day after the first, calculate the percentage change from the previous day's price.
- Round each daily return to four decimal places.
- Return a list containing these daily returns.
Oplossing
Bedankt voor je feedback!
single