Week 2: Python Programming Skills

Learning Objectives:

Core Python Concepts:

Basic Programming Fundamentals

Financial Applications

Practice Exercises:

  1. Basic Python Programming:
    • Write functions for financial calculations
    • Create loops for data processing
    • Implement conditional logic for trading rules
  2. Financial Applications:
    • Calculate Altman Z-Score for a company
    • Process stock price data
    • Compute basic portfolio metrics

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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

Tasks:

  1. Data Preparation
    • Load and clean company financial data
    • Calculate all required ratios
    • Handle missing or invalid data
  2. Implementation
    • Code the Z-Score formula
    • Apply to company data
    • Classify companies by risk level
  3. Analysis
    • Create visualizations of results
    • Identify high-risk companies
    • Write brief analysis report
Submit: As instructed in the weekly assignment

Additional Resources:

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