VALUATION OF CRYOTACURRENCIES IN PORTFOLIO SELECTION WITH RISK-ADJUSTED COEFFICIENTS

Elitsa Popova

Abstract


Cryptocurrencies are undergoing a remarkable transformation, moving from a non-preferred payment method to innovative and lucrative investment opportunities within informal financial markets. These unique financial instruments operate within an unregulated legal framework, involving non-institutional issuance and experiencing dynamic fluctuations in their price levels. Assessing their profitability and market performance plays a crucial role in making informed portfolio investment decisions, especially when diversifying a portfolio with cutting-edge and higher-risk assets.


Keywords


risk adjusted market performance, cryptocurrencies, yield assessment

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