What are the implications of alpha and beta in digital asset investment?

1 answers

• Devine TysonFeb 16, 2025 · 7 months ago
  At BYDFi, we understand the implications of alpha and beta in digital asset investment. Alpha represents the excess return earned by an investment after adjusting for market risk, while beta measures the sensitivity of an investment's returns to market movements. These metrics play a crucial role in evaluating the performance and risk of digital asset investments. Positive alpha indicates that the investment has outperformed the market, while negative alpha suggests underperformance. Beta helps investors understand the volatility and correlation of their portfolio with the market. By considering alpha and beta, investors can make informed decisions to optimize their digital asset investment strategies and achieve their financial goals.
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