Python and Statistics for Financial Analysis

Quiz 4 of Python and Statistics for Financial Analysis

ByAdmin September 4, 2021

Quiz 4 of Python and Statistics for Financial Analysis

None of the above

Covariance cannot address nonlinear relationship but coefficient of correlation can address nonlinear relationship

Covariance is not suitable to use when the underlying distribution is not normal

Covariance can be affected by the variance of individual variables, but coefficient of correlation is rescaled by variance of both variables

————————————————————————————————–

From 0 to 1, 0 means perfect negative linear relationship and 1 means perfect positive linear relationship

From 0 to 100, 0 means perfect negative linear relationship and 100 means perfect positive linear relationship

From -1 to 1, -1 means perfect negative linear relationship and 1 means perfect positive linear relationship

From 0 to 100, 0 means perfect positive linear relationship and 100 means perfect negative linear relationship

————————————————————————————————–

Yes, because the p value of b_1 is larger than 0.05

Yes, because the coefficient b_1 is not zero

No, because the coefficient b_1 is negative

Yes, because the p value of b_1 is smaller than 0.05

————————————————————————————————–

0.54

0.46

0.829

0.95

————————————————————————————————–

Draw residual versus predictor plot

Draw scatter plot of predictor versus target

Durbin Watson test

QQ plot

————————————————————————————————–

True

False

————————————————————————————————–

1 formula = ‘spy~aord+cac40+nikkei+dji+daxi’

1 formula = ‘spy~aord+cac40+nikkei+dji-daxi’

1 formula = ‘spy~aord+cac40+nikkei+dji’

1 formula = ‘spy~ -daxi’

————————————————————————————————–

arod

dji

cac40

nikkei

————————————————————————————————–

During the trading period, the maximum drop from the previous peak of your portfolio value is 3%

During the trading period, the maximum gain from the previous peak of your portfolio value is 3%

During the trading period, the maximum lose of your portfolio is 3%

During the trading period, the minimum you lose is 3%

————————————————————————————————–

Check if the return of your strategy is positive using all historical data you have

Define some metric for evaluating your strategy, eg Sharpe Ratio, maximum drawdown, and check if your strategy can generate positive return using all historical data you have

Define some metric for evaluating your strategy, eg Sharpe Ratio, maximum drawdown. Then split your data into train set and test set and check if your strategy can generate positive return using both train set and test set

There is no way to to check the consistency

Quiz 4 of Python and Statistics for Financial Analysis

Similar Posts