When you assess whether to invest in an asset, you want to look not only at how much money you could make but also at how much risk you are taking. The Sharpe Ratio, developed by Nobel Prize winner William Sharpe some 50 years ago, does precisely this: it compares the return of an investment to that of an alternative and relates the relative return to the risk of the investment, measured by the standard deviation of returns.
In this project, you will apply the Sharpe ratio to real financial data using pandas. Before starting this project you, should have completed the DataCamp course Importing and Managing Financial Data using Python.
Founder & Lead Data Scientist at Applied Artificial Intelligence
Stefan is the Founder & Lead Data Scientist at Applied Artificial Intelligence. He has 15 years of experience in finance and investments, with a big focus on emerging markets.See More