RS 205 · Level 200 · Intermediate

Statistics for Investors

Name: RS 205 Statistics for Investors
Author: Elizabeta Dimoska

This course teaches the statistics an investor needs to measure risk, test a claim and avoid being fooled by data. This free course by Elizabeta Dimoska runs to ten modules and about 15 study hours.

Two Galton boards, where falling beads pile up into a bell-shaped normal distribution

Photo: Rodrigo Tetsuo Argenton, CC BY-SA 4.0, via Wikimedia Commons (cropped).

Start Module 1 →

You’ve completed 0 of 10 modules — 0%.

What you'll be able to do

Compute returns and descriptive statistics.
Apply probability rules and Bayes' theorem.
Use the normal distribution and know where it fails.
Build a confidence interval.
Run and interpret a hypothesis test.
Calculate and question a correlation.
Run a regression to estimate beta and alpha.
Recognize the properties of financial time series.
Judge a backtest, a Monte Carlo simulation and a value-at-risk figure.

Spreadsheet functions usedAVERAGE, MEDIAN, STDEV.S, VAR.S, SKEW, KURT, CORREL, COVARIANCE.S, SLOPE, INTERCEPT, RSQ, LINEST, NORM.S.DIST, NORM.S.INV, T.DIST.2T, LN, RAND and NORM.INV.

Before you startPrerequisite: Intermediate (Course 2). Tools used: a spreadsheet for every module, downloaded price histories, the RiskStock paper trading journal.

How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 15 study hours in all: short, dense lessons (about 60 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

Data and returns Core

Classify financial data and calculate simple and log returns correctly.

~5 min read · ~1.5 hr with practice

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Descriptive statistics Core

Summarize a return series by its centre, spread and shape.

~5 min read · ~1.5 hr with practice

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Probability Core

Apply the rules of probability, expected value and Bayes' theorem to investment questions.

~6 min read · ~1.5 hr with practice

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Distributions Core

Use the normal distribution and z-scores, and explain why real returns have fatter tails.

Video 3:36~6 min read · ~1.5 hr with practice

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Sampling and estimation Core

Calculate a standard error and a confidence interval and identify sampling biases.

~6 min read · ~1.5 hr with practice

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Hypothesis testing Advanced

Set up and interpret a t-test, and explain why testing many ideas produces false discoveries.

~6 min read · ~1.5 hr with practice

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Correlation Advanced

Calculate covariance and correlation and avoid the main errors in interpreting them.

~6 min read · ~1.5 hr with practice

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Regression Advanced

Estimate and interpret a simple regression, read standard output and recognize overfitting.

~6 min read · ~1.5 hr with practice

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Time series Advanced

Describe the statistical properties of prices, returns and volatility over time and scale volatility across horizons.

~6 min read · ~1.5 hr with practice

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Backtesting, simulation and risk measurement Advanced

Evaluate a backtest, describe a Monte Carlo simulation and calculate value at risk.

~8 min read · ~1.5 hr with practice

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After the modulesThe capstone project → When you're readyFinal exam & certificate →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 205 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is Intermediate (Course 2). The 200-level courses can be taken in any order once the prerequisite is done.

How long does it take?

About 15 study hours. The reading itself is short and dense, about 60 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Is the certificate a professional qualification?

No. It is a certificate of completion from a free educational course. It is not a licence, an accreditation or a professional designation.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.