Economy Insights

After Running the Modern Portfolio Theory, for the only cryptocurrency model. The portfolio with the highest Sharp Ratio is around 60% BTC and 40% ETH. Remember, Sharp Ratio measure the (Expected Return - Risk free rate)/ SD. It is the metric to measure the effectiveness of a portfolio.

Interesting findings! It seems like a portfolio consisting of 60% BTC and 40% ETH has the highest Sharp Ratio in the cryptocurrency model. This indicates a good balance between expected return and risk. Sharp Ratio is indeed a crucial metric for evaluating portfolio effectiveness.