# ✅ Checkpoint: Market Data and Statistics

By Anh Le



## Quiz

1. Which set lists the three inputs every testable quantitative strategy needs?
   - Data, rules, and costs
   - Costs, forecasts, and news headlines
   - Rules, leverage, and luck
   - Data, opinions, and intuition
2. A rule says: "Buy at today's open if today's close is higher than today's open." What is the main problem with this rule?
   - It uses lookahead bias, because at the open you do not yet know the close
   - It ignores commission but nothing else
   - It is an opinion rather than a rule
   - It has no position sizing rule
3. In yfinance, which setting returns prices already adjusted for splits and dividends?
   - progress=False
   - auto_adjust=True
   - tz_localize(None)
   - keep="last"
4. Your cleaned price series has 6 isolated single-day holes and one 40-day stretch of missing closes. What is the correct handling?
   - Forward fill the 6 isolated days with a limit, and leave the 40-day stretch unfilled and flagged
   - Replace every missing close with zero
   - Drop all rows with missing values without counting them
   - Forward fill everything, including the 40-day stretch
5. A price goes from 100 to 105 on day one, then from 105 to 110 on day two. What is true about the returns?
   - The two daily simple returns are equal and sum to the total simple return
   - Simple returns add across time, so the total is 10%
   - Log returns must be multiplied to get the total
   - The two daily log returns are equal and sum to ln(110/100)
6. To annualize a daily volatility, you multiply it by the square root of ____, which is about 15.87.
7. The gap between the price a backtest assumed and the price an order actually fills at is called ____.
8. Describe in your own words how you would take one ticker from a raw download to a return column and a volatility number you can defend. Mention the cleaning steps, the return type you chose, and how you annualized volatility.


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## Contents

Part of [📊 Quantitative Trading for Beginners: Build and Backtest a Strategy](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy.md)

- **📈 Market Data and Return Statistics**
  - [🧭 What a Quant Strategy Actually Needs](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/what-a-quant-strategy-needs.md)
  - [🗂️ Getting and Cleaning Price Data](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/getting-and-cleaning-price-data.md) (sign-in required)
  - [📉 Returns, Volatility, and Time Series Basics](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/returns-volatility-and-time-series-basics.md)
  - [✅ Checkpoint: Market Data and Statistics](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/checkpoint-market-data-and-statistics.md) — this lesson
- **🧪 Strategy Design and Backtesting**
  - [📝 From Idea to Testable Trading Rules](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/from-idea-to-testable-trading-rules.md)
  - [🧮 Building the Backtest: Fills, Slippage, and Fees](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/building-backtest-fills-slippage-and-fees.md)
  - [🔍 Reading Results and Avoiding Overfitting](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/reading-results-and-avoiding-overfitting.md)
  - [✅ Checkpoint: Strategy Design and Backtesting](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/checkpoint-strategy-design-and-backtesting.md)
- **🛡️ Risk Control and Capstone Build**
  - [⚖️ Position Sizing and Core Risk Metrics](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/position-sizing-and-core-risk-metrics.md)
  - [🏗️ Capstone: Build and Backtest Your Own Strategy](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/capstone-build-and-backtest-your-strategy.md) (premium content)
  - [✅ Checkpoint: Risk and Capstone](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/checkpoint-risk-and-capstone.md) (premium content)
- [Course cheatsheet](https://everwise.study/courses/quantitative-trading-for-beginners-build-and-backtest-a-strategy/cheatsheet.md) (premium content)