Quant Finance
A single unit of ownership in a company traded on an exchange.
What is a stock (or share)?
ML task where the computer groups data with no labels.
What is clustering?
Python keyword that displays text to the screen.
What is print?
Middle value of a sorted data set.
What is the median?
Fee you pay each time you trade a stock.
What is a commission?
This U.S. index of 500 large companies is a common market benchmark.
What is the S&P 500?
Popular Python ML library that starts with “scikit-”.
What is scikit-learn?
Common alias you use after import pandas as ___.
What is pd?
A 50-50 chance is written as this decimal probability.
What is 0.5?
Market price swings up and down—single word for that variability.
What is volatility?
When you buy a stock expecting its price to rise, you are taking this position.
What is a long position?
Simple tree-based model that splits data by “yes/no” questions.
What is a decision tree?
Command pip ___ pandas adds a package to your environment.
What is install?
Visual plot with boxes and whiskers that shows median and quartiles.
What is a boxplot?
Training a model with future information by accident is called this bias.
What is look-ahead bias?
The simple phrase for not “putting all your eggs in one basket” when investing.
What is diversification?
This metric measures the difference between predicted and actual values in regression (squared).
What is MSE (mean squared error)?
Method df.head() shows this many rows by default.
What is five?
Law that says larger samples make the sample mean approach the true mean.
What is the Law of Large Numbers?
“Garbage in, garbage out” reminds us to clean this before modeling.
What is data?
A quick ratio: price per share divided by earnings per share.
What is the P/E ratio?
The practice of training a model on data it later gets tested on— a big “no-no.”
What is overfitting?
The pandas function that loads a CSV file into a DataFrame.
What is read_csv?
When two variables move together we call that positive or negative _____.
What is correlation?
The maximum drop from a portfolio peak to a trough—three-word metric.
What is maximum drawdown?