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The Bitcoin Sharpe Ratio: The Risk And Reward of Investing In Cryptocurrencies is the risk-adjusted returns of some popular assets such as gold and cryptocurrency. The ratio is an important metric for evaluating the performance of assets or a portfolio. It is a measure of the quality of returns, which is why it is called risk adjusted returns. The key to using it effectively is to choose the right benchmark for the most widely used asset in the same class. The Information ratio is defined as the portfolio return minus benchmark return divided by the tracking error.