What is the Treynor ratio and how does it apply to the cryptocurrency market?

1 answers

• Dec 25, 2021 · 3 years ago
  The Treynor ratio is a popular metric used in the investment world to measure the risk-adjusted return of a portfolio. It takes into account the systematic risk of the portfolio, which is measured by its beta, and compares it to the risk-free rate. In the cryptocurrency market, the Treynor ratio can be used to evaluate the performance of a cryptocurrency portfolio. It helps investors understand how much return they are getting relative to the risk they are taking. So, if you're a cryptocurrency investor, keeping an eye on the Treynor ratio can give you valuable insights into the risk and return of your portfolio.
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