Investment Projections

This chapter will build on what we have just completed with portfolios. Probably the most interesting question about any portfolio is performance, or how much money it will return against your initial investment. When evaluating portfolios, we often project past performance into the future as a guideline of what to expect. As everyone knows, past performance does not guarantee future returns, but at least you’ll have some idea of the relative risk and reward of the portfolio.

In this chapter, we will look at some key concepts required to make basic calculations for the future value of our investments. From there, we will start building some code for calculating and visualizing projections in different ways. Finally, we will tie these together with previous chapters to look at a complete Goal-based investment plan and evaluate Goal probability. By the end of the chapter, you’ll have learned how to create investment projections in Python, and how...