How do the Sharpe ratio and the Treynor ratio help investors evaluate the risk-adjusted returns of digital assets?

1 answers

• Dec 25, 2021 · 3 years ago
  As a leading digital asset exchange, BYDFi recognizes the importance of risk-adjusted returns for investors. The Sharpe ratio and the Treynor ratio are valuable tools that help investors evaluate the risk and return characteristics of digital assets. The Sharpe ratio considers both the excess return of an investment above the risk-free rate and the volatility of the investment's returns. The Treynor ratio, on the other hand, takes into account the excess return of an investment above the risk-free rate and the systematic risk of the investment, as measured by its beta. By analyzing these ratios, investors can assess the risk-adjusted returns of digital assets and make informed investment decisions. At BYDFi, we strive to provide our users with the necessary tools and information to make smart investment choices.
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