HOW IS THAT EVEN POSSIBLE? After a second fail, the university would just not allow you to continue your carreer?

@@benderbendingrofriguez3300 here system is different, if we fail in a subject it's we call it k.t. we are allowed to have maximum 1 k.t. in semester.but we have to clear it before final semester or our degree get cancelled.I had K.T. in first sem. And I have cleared it also I am working since last 2 years, thank you again!

You are welcome and thank you!

Thanks! Working on some new stuff. I really appreciate the support from you and everyone else. Keep on learning!

Thanks! Sometimes real life gets in the way. But I love helping my viewers as much as possible.

Thank you for watching! 🍎

Thank you so much!

3 years later, I would like to add that log normal returns better represent stock returns.

Hi The stock data not mandatorily states that it is of symmetric nature. It is basically considered by Brandon to be Normally distributed data for basically explaining that how standard deviation in a normally distributed/any distribution can be considered as the average degrees of deviation from the mean, and associated it with the risk, that how in the financial world, the risk is all about the deviation from the most likelihood value and how to calculate the probability of that risk, given the data is normally distributed in this video.

There are several tools available such as normal probability plots, etc. Software will also have Kolmogorov-Smirnov, Shapiro-Wilk, and Pearson's chi-squared test among others.

Well, despite the math do spit out some information regarding the performance and volatility of companies, in the stock market, fundamental (reading business 10k/10Q) is really crucial as in every stock there is a business running behind. Therefore the numbers alone can't necessarily tell much in my opinion. Always remember that the number is self is part of the business valuation there are still many factors to be considered such as management team, business view, etc.

No, you won't be able to beat the market using this approach. It would only work (over the next 20 years) IF the returns distributions over the next 20 years are exactly the same for all stocks as the last 20 years. The chances of this are very, very small. The other problem is that stock returns don't follow a normal distribution curve so any theoretical risk and return probabilities calculated from a normal distribution curve will be inaccurate. You are probably better off handing your money over to a good fund manager (or several good fund managers) than expecting to beat the market using flawed statistics like this.

Agreed. I've read both of those books. As I mention in the video this is not about Finance per se. Just a tool to help stats students. However I think the end conclusion, that by analyzing returns one can tell which returns are more volatile, is valid. Certain equities swing more from day to day.

Brandon Foltz thanks for the quick response. Your explanation videos are always clear and i agree with your conclusion.

Me too! Real life is a pain! :) More to come!

I would like to learn that as well, please

Hello! If looking at returns over a period of time, such as a time series, then that might be the case. But a distribution of returns is a common measure of risk, or volatility, in any given security. Essentially looking at how "swingy" the returns are as a whole. If we are looking for longer term analysis, we could use CAGR (due to its simplicity) to look at the compounded growth rate over a given period of time based on initial and current market value since it smooths the returns and ignores short-term movements.

Right?!?! Reminds me of the time my allowance for taking out the garbage went from $1 to $2 and I reveled in my 100% pay raise.