January 2020
Beginner to intermediate
432 pages
11h 24m
English
We will also discuss how to account for inflation in the returns series. To do so, we continue with the example used in this recipe.
We first download the monthly Consumer Price Index (CPI) values from Quandl and calculate the percentage change (simple return) in the index. We can then merge the inflation data with Apple's stock returns, and account for inflation by using the following formula:

Here, Rt is a time t simple return and
t is the inflation rate.
Execute the following steps to account for inflation in the returns series. ...
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