Missing interpretation

Installations & Python Packages
1

Course Name: Getting Started with Algorithmic Trading!, Section No: 7, Unit No: 6, Unit type: Notebook

in this part, cell 28: Find "returns" in the empty cell here to find the simple returns for this stock.
You can use the formula: Percentage Change = (Initial Value - Final Value) - 1

the answer we got is -6, but -6 what? it is necessary to have a proper interpretation of the result

2

Hey Sebastian,



The right way to compute simple returns is:

Final Value / Initial Value - 1



If you multiply the result with 100 you will get the return in terms of percentage. This has been updated in the notebook too. You can check here.



Thanks,

Rushda Ansari