Calculating financial returns
The file you loaded in the previous exercise included daily Open, High, Low, Close, Adjusted Close, and Volume data, often referred to as OHLCV data.
The Adjusted Close column is the most important. It is normalized for stock splits, dividends, and other corporate actions, and is a true reflection of the return of the stock over time. You will be using the adjusted close price to calculate the returns of the stock in this exercise.
StockPrices from the previous exercise is available in your workspace, and matplotlib.pyplot is imported as plt.
This exercise is part of the course
Introduction to Portfolio Risk Management in Python
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# Calculate the daily returns of the adjusted close price
StockPrices['Returns'] = StockPrices[____].____