What is the method to determine the Sharpe ratio of a cryptocurrency portfolio?

1 answers

• Jan 27, 2022 · 3 years ago
  Calculating the Sharpe ratio of a cryptocurrency portfolio can be a useful tool for investors. However, it's important to note that the Sharpe ratio is just one metric and should not be the sole factor in making investment decisions. Other factors, such as the investor's risk tolerance and investment goals, should also be considered. Additionally, the Sharpe ratio assumes a normal distribution of returns, which may not hold true for cryptocurrencies due to their high volatility. Therefore, it's important to use the Sharpe ratio in conjunction with other metrics and analysis when evaluating a cryptocurrency portfolio.
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