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Bitcoin: Modern Portfolio Theory and the Sharpe Ratio

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Benjamin Cowen
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Modern Portfolio Theory was developed decades ago, and in this video, we introduce it as we begin a new video series. In this video, we show the Sharpe ratio temuland crypto glossary sharpe ratio The Sharpe ratio describes how much excess return you receive for the extra volatility you endure for holding a riskier asset.Learn more for BitcoinBitcoin1$ 67,714.930.18%-6.01%-15.89%details, and compare it to the S&P 500 and EthereumEthereum2$ 3,419.230.15%-0.14%1.09%details. During the course of this year, we will investigate various cryptocurrency sectors and weighting techniques to identify “The Efficient Frontier,” or the manner in which you can maximize your expected return at a certain risk level, by changing the weights on your portfolio.

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BitcoinBTCCryptocurrencyCryptoS&P 500SPXEthereumETHModern Portfolio TheoryMPTRiskRewardExpected ReturnRisk Free RateSharpe RatioVolatilityVarianceThe Efficient Frontier