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Exercise

Cumulative return on $1,000 invested in google vs apple I

To put your new ability to do cumulative return calculations to practical use, let's compare how much $1,000 would be worth if invested in Google ('GOOG') or Apple ('AAPL') in 2010.

Instructions

100 XP

We have already imported pandas as pd, and matplotlib.pyplot as plt. We have also loaded Google and Apple stock prices in a variable data.

  • Define a variable investment with the value 1000.
  • Calculate returns by applying .pct_change() to data.
  • Add 1 to returns and assign this to returns_plus_one, then apply .cumprod() to returns_plus_one and assign the result to cumulative_return.
  • Multiply cumulative_return by investment, and plot the result.