patilsukanya / p02.-normal-distribution-of-stocks

Used libraries and functions as follows:

P02.-Normal-Distribution-Of-Stocks

To understand Normal Distribution and its application. Daily returns of stocks traded in BSE (Bombay Stock Exchange). To understand risk and returns associated with various stocks before investing in them. BEML and GLAXO Stocks study

Creating DatetimeIndex from column date to plot trends over time. Plotting Close price trends.

Q1. Expected daily Rate of return from these stocks. Rate of return is Gain for positive values and Loss for negative values. Plotting Gains or Losses over time for both the stocks. Plotting the normal distribution for both the stocks.

Q2. Which Stocks have higher risks or volatality as far as daily returns are concerned. Distribution plots and using mean and standard deviation. variance or standard deviation of gain indicates risk.

Q3. Which Stock has higher probability of making a daily return of 2% or more. BEML has higher probabilty of making a daily return of 2% or more with 22.77% probability as compared to Glaxo with 7.17% probability.

Q4. Which Stock has higher probability of making a loss (risk) of 2% or more. Glaxo has higher probability of making loss(risk) of 2% or more ith 93.6% probability as compared to Beml ith 77.9% probability

Q5. Compute 2% loss or gain for both the stocks Glaxo is at higher risk of making 2% loss or gain by 86.42% probability than Beml 55.12% probability.