Difficulty: Medium
Category: backtesting
Practice quant interview questions from top firms including Jane Street, Citadel, Two Sigma, DE Shaw, and other leading quantitative finance companies.
Topics: statistics, hypothesis testing, scipy
Hypothesis testing provides a statistical framework to determine if a trading strategy's average return is significantly different from zero or merely the result of random noise. By calculating the T-Statistic and P-Value, quantitative researchers can assess the validity of a strategy against a null hypothesis of zero mean return. This process is essential for rigorous backtesting and minimizing false discoveries in algorithmic trading. Task Implement a function solution(returns) that calculate
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