Prerequisites
Returns, compounding, covariance and point-in-time asset universes.
What to study
Study weighting, rebalancing, factor exposures, turnover, drawdowns and benchmark selection. Include survivorship and corporate-action treatment in the data design.
A project to complete
Compare equal weights with an inverse-volatility rule using training-only volatility estimates. Preserve cash, apply costs, and evaluate both on the same subsequent dates.
A useful deliverable
Publish the problem definition, documented data, assumptions, reproducible code, a simple comparison and a short discussion of failure cases. Label demonstrations and provisional findings clearly.
Continue reading
Use the first supporting lesson, the next practical topic, and the source reading lists. The repository map shows where earlier material is held.