What is the Sharpe ratio of a cryptocurrency portfolio?

Can you explain what the Sharpe ratio is and how it applies to a cryptocurrency portfolio?

1 answers
- The Sharpe ratio is a widely used measure of risk-adjusted return in the financial industry. It helps investors assess the return they are getting for the amount of risk they are taking. In the context of a cryptocurrency portfolio, the Sharpe ratio can be used to evaluate the performance of the portfolio relative to its volatility. A higher Sharpe ratio indicates a better risk-adjusted return. However, it's important to note that the Sharpe ratio is not the only metric to consider when evaluating a cryptocurrency portfolio. Other factors such as market conditions, liquidity, and diversification should also be taken into account.
Mar 18, 2022 · 3 years ago
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