Week 2: Python Programming Skills
Learning Objectives:
- Master fundamental Python programming concepts
- Learn to use conditional statements and loops effectively
- Understand functions and basic data structures
- Apply these concepts to financial data analysis
Core Python Concepts:
Basic Programming Fundamentals
- Control Flow
- Python Control Flow
- If statements, loops, and functions
- Note: Search "Python control flow examples finance" on Perplexity.ai for financial applications
- Data Structures
- Lists, dictionaries, and sets
- Working with financial data types
- Search "Python data structures finance examples" for practical applications
Financial Applications
- Basic Calculations
- Simple and compound interest
- Return calculations
- Portfolio statistics
- Data Manipulation
- Reading financial data files
- Basic data cleaning
- Simple transformations
Practice Exercises:
- Basic Python Programming:
- Write functions for financial calculations
- Create loops for data processing
- Implement conditional logic for trading rules
- Financial Applications:
- Calculate Altman Z-Score for a company
- Process stock price data
- Compute basic portfolio metrics
Note: If you need additional resources or updated information, use Perplexity.ai with queries like "Python programming financial analysis examples 2025" or "Python finance calculations tutorial 2025"
Weekly Assignment
Due: End of Week 2
Altman Z-Score Formula:
Z = 1.2X₁ + 1.4X₂ + 3.3X₃ + 0.6X₄ + 1.0X₅
Where:
X₁ = Working Capital / Total Assets
X₂ = Retained Earnings / Total Assets
X₃ = EBIT / Total Assets
X₄ = Market Value of Equity / Total Liabilities
X₅ = Sales / Total Assets
Z = 1.2X₁ + 1.4X₂ + 3.3X₃ + 0.6X₄ + 1.0X₅
Where:
X₁ = Working Capital / Total Assets
X₂ = Retained Earnings / Total Assets
X₃ = EBIT / Total Assets
X₄ = Market Value of Equity / Total Liabilities
X₅ = Sales / Total Assets
Tasks:
- Data Preparation
- Load and clean company financial data
- Calculate all required ratios
- Handle missing or invalid data
- Implementation
- Code the Z-Score formula
- Apply to company data
- Classify companies by risk level
- Analysis
- Create visualizations of results
- Identify high-risk companies
- Write brief analysis report
Submit: As instructed in the weekly assignment