The probability you get exactly 5 heads on 10 coin flips is 24.61% = TRUE Introduction How would you answer the question, “If you flipped a fair coin 10 times, how many times would expect the coin to land heads up?” …

A step-by-step Python recipe. — Cross-Validation Explained Cross-validation is a method that can estimate the performance of a model with less variance than a single ‘train-test’ set split. It works by splitting the dataset into k-parts (i.e. k = 5, k = 10). Each time we split the data, we refer to the action as creating a…

How much you can borrow? What will your loan payment be? — Last week I had a significant amount of warranty work done on my vehicle and spent almost an entire workday at the dealer. Several times, I walked around the showroom and past the tables where customers were talking to salespeople. I heard the same two questions asked repeatedly. The customers…

Learn how investors monitor stock volatility and risk with betas & how to calculate your own in Python. — A stock’s beta measures how risky, or volatile, a stock’s price is compared to the entire market. When beta is less than 1, a stock is less volatile, or less risky than the market. The opposite holds true when beta is greater than 1, showing the stock would be more…

Building Algorithmic Trading Bots for the Decentralized Finance World — Cryptocurrency trading has exploded in recent years, providing traders with a new asset class and countless opportunities. As decentralized finance (DeFi) grows, so does the need for better tools and strategies for managing a crypto portfolio. Algorithmic trading is one such approach that has gained traction in the cryptocurrency space…

The bond market, a crucial component of the global financial system, offers investors an opportunity to diversify their portfolios and mitigate risk. However, understanding the relationship between bond prices and interest rates can be a challenge for many. …

Includes a Complete Code Walkthrough What is Financial Portfolio Optimization? Financial portfolio optimization is a technique used to build a portfolio of financial assets. This is done so that returns can be maximized and risks can be reduced. …

Poor Internet Search Results I realized that when I used Google for internet searches, I often got results that did not satisfy my query but instead showed up on “junk sites” that managed to get high rankings in the search engine algorithm. …

The Altman Z-Score is provided on numerous investment websites, but many people are unaware of how it’s calculated, let alone what scores are good or bad. This article explains how the Altman Z-Score is calculated, what the score means, and provides a complete example calculation using a real-world corporation. …