Final

Question 1

Tick

Answer 1

Time and volume. Usually consolidated bay block of time.

Question 2

How is data aggregated

Answer 2

In Time boundaries

• Open - First Transaction
• High - Highest price in time period
• Low - Lowest Price during time period
• Close - Last transaction
• Volume - Sum of all shares during time period.

Question 3

What is a Stock Split and why does it occur?

Answer 3

When the price get’s to high the stocks are split into smaller chunks. This is done due to options and individual stock shares.

Question 4

What is the probelm with stock splits.

Answer 4

Algorithms may see the stock splits as a decreas in value.

Question 5

Adjusted Close

Answer 5

A timeline of prices that are adjusted for changes in value.

• Starting with a current point in time,
• Walk backwards in time and divide the price by the number of splits.

Lesson 02-07-05

Question 6

Dividends

Answer 6

Companies can pay dividends to their owners.

Dividends can impact the value of a stock.

Question 7

Adjusting for dividends

Answer 7

Start in current time

• Walk backwards until the dividend payment.
• Subtract all previous prices by the dividend payment.
  *

Question 8

Survivor Bias

Answer 8

Work on this card,,,

Question 9

Efficient Markets Hypothesis

Answer 9

Assumptions

• Large number of investors for profit.
• New information arrives randomly
• Prices adjust quickly
• Price reflects all available information

Question 10

Where does information come from?

Answer 10

• Price / Volume - Public rapid quick intormation.
• Fundamental - Reported quarterly, points to the root value of the company.
• Exogenous - Information about the world that affects the company.
• Company Insiders - Internal information - may not be legal.

Question 11

What are the 3 Forms of the EMH

Answer 11

• Weak EMH: Future prices cannot be predicted by analyzing historical prices.
• Semi-Strong: Prices adjust rapidly to new public information
• Strong: Prices reflect all information public and private.

Question 12

Is EMH correct?

Answer 12

There is evidence to refute both Strong adn Semi-Strong.

Question 13

What is reinforcement learning

Answer 13

Learning a policy Π through intereacting with a environment by taking actions in states and getting rewards.

03-05-02

Question 14

What goes int he state

Answer 14

• Market Features
• Holdings