A ratio that is used to determine potential Returns on Investment (ROI) compared to its risk.

Sharpe Ratio is a ratio that is used to determine potential Returns on Investment (ROI) compared to its risk. This ratio is useful to investors because it helps them to recognize whether an investment is worth the risk or is just another unprofitable one with no reasonable chance of bringing significant ROI.

Generally, experts advise investors who want to choose profitable investments with strong ROIs to choose those with high Sharpe ratios. These investments hold greater potential for profits than the risks.

An automatic contract in blockchain that confirms a transaction after the stated conditions in the contract are met.

A Smart Contract is an automatic contract on blockchain networks that confirms transactions between sellers and buyers after the stated conditions in the contract have been met. This contract type was initially proposed by Nick Szabo in 1994. The ultimate goal of this proposal was to have contracts whose terms and conditions determined the setting and trust of the parties involved. As a result, buyers and sellers would never have to worry about duplicity. Crypto smart contracts were first used on the Ethereum network. It's now a blockchain staple.

Financial industries stand to gain a lot from the application of smart contracts in their transactions. Also, in crypto, these contracts are proven to be breach-proof, meaning that they offer an extra layer of security for users. Smart contracts launch is usually a significant milestone in a new blockchain's development.

The disposition of investors and traders towards the market.

Sentiment, also known as market sentiment, is the disposition that investors and traders have toward the market. It serves as a great tool for the average trader since it helps them know the existing stand of the market and relate to it. Moreover, this disposition also helps them interface with different market conditions in the long run.

The analysis of this disposition of traders and investments is known as sentiment analysis. This analysis gathers information about market opinion from industry news and social media, and often influences trading decisions. When the overriding market sentiment is positive, the average trader is more likely to buy or keep their existing portfolio in hopes of more profits in the future.

Sharpe Ratio

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