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What factors should I consider when evaluating the time weighted return of a digital asset?

avatarPotter MooreDec 18, 2021 · 3 years ago1 answers

When evaluating the time weighted return of a digital asset, what are the key factors that I should take into consideration? How can I determine the performance of a digital asset over a specific period of time?

What factors should I consider when evaluating the time weighted return of a digital asset?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    When evaluating the time weighted return of a digital asset, it's important to consider factors such as the asset's historical performance, market conditions, and overall risk. Historical performance can provide insights into the asset's volatility and potential for future growth. Analyze the asset's price movements over different time periods and compare it to other similar assets. Additionally, consider the market conditions and trends that may impact the asset's performance. Factors such as market sentiment, regulatory developments, and technological advancements can all influence the value of a digital asset. Lastly, assess the risk associated with the asset, including factors such as liquidity, security, and the team behind it. By considering these factors, you can make a more informed decision when evaluating the time weighted return of a digital asset.