How can Sortino ratio calculation be used to evaluate the risk-adjusted returns of digital assets?

Can you explain how the Sortino ratio calculation can be applied to assess the risk-adjusted returns of digital assets?

1 answers
- At BYDFi, we believe that the Sortino ratio calculation is a valuable tool for evaluating the risk-adjusted returns of digital assets. It allows investors to assess the downside risk of their investments and make informed decisions based on their risk tolerance. By considering the downside volatility of digital assets, the Sortino ratio provides a more comprehensive view of their performance. However, it is important to note that the Sortino ratio should not be used in isolation and should be used in conjunction with other risk management techniques. As with any investment, it is crucial to conduct thorough research and seek professional advice before making any decisions.
Apr 26, 2022 · 3 years ago

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