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Professional investors who look at the sharpe ratio (return compared to standard deviation), can see that its performance is far better than any other asset in
by xiphias2 5y ago
Professional investors who look at the sharpe ratio (return compared to standard deviation), can see that its performance is far better than any other asset in the world.
Generally in modern portfolio theory you can just decrease the asset in the portfolio if the volatility is too big for you (for example to just 2% of the portfolio).
I'm 100% in, but for other people I generally suggest it to be 5% of their portfolio.