Hi
While calculating the daily returns using the CSV containing sbra_adjusted_closings, I am curious why this works:
def rate_of_return(adj_closings):
daily_simple_ror = np.diff(adj_closings) / adj_closings[:-1]
return daily_simple_ror
daily_simple_returns_sbra = rate_of_return(sbra_adj_closings)
print(daily_simple_returns_sbra)
[codebyte]
And this does not:
[/codebyte]
def rate_of_return(adj_closings):
daily_simple_ror = np.diff(adj_closings) / adj_closings
return daily_simple_ror
daily_simple_returns_sbra = rate_of_return(sbra_adj_closings)
print(daily_simple_returns_sbra)
What is the [:-1] doing that allows the former code to work?