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Bitcoinist 2020-01-25 20:14:32

Bitcoin is the Only Asset With “Sharpe Ratio” More Than 1: PlanB

Bitcoin Twitter commentator PlanB has claimed that BTC is the only asset that has a Sharpe ratio of greater than 1. The Sharpe ratio describes the increased rate of return received for the extra volatility sustained when holding a riskier type of asset. Risk vs. Reward To understand the Sharpe ratio, one must take into consideration the returns of holding a risk-free asset, compared to holding a riskier asset with higher returns. In this case,Read More The post appeared first on Bitcoinist.com.

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