How does Robinhood calculate the total return of cryptocurrencies?
Sarthak GaurDec 30, 2021 · 3 years ago3 answers
Can you explain how Robinhood calculates the total return of cryptocurrencies? I'm curious about the specific methodology they use.
3 answers
- Dec 30, 2021 · 3 years agoRobinhood calculates the total return of cryptocurrencies by taking into account the price change and any dividends or interest earned. They use a formula that factors in the initial investment, the current value of the investment, and any additional contributions or withdrawals. This allows users to see the overall performance of their cryptocurrency investments on the platform.
- Dec 30, 2021 · 3 years agoWhen calculating the total return of cryptocurrencies, Robinhood considers both the price appreciation and any dividends or interest earned. They use a weighted average formula that takes into account the time period and the amount invested. This provides a comprehensive view of the investment's performance over time.
- Dec 30, 2021 · 3 years agoRobinhood calculates the total return of cryptocurrencies using a proprietary algorithm that factors in the price change, dividends, and interest earned. This algorithm is designed to provide an accurate representation of the investment's performance. Other exchanges may use different methodologies, so it's important to understand how each platform calculates total return before making investment decisions.
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