Note(s): The table presents the risk and return characteristics of MicroStrategy equity during the periods where the firm did not utilize cryptocurrencies and where the firm utilized cryptocurrencies within its corporate treasury strategies. The average daily returns (arithmetic average of the daily returns based on adjusted closing prices), the standard deviation of the returns (the square root of ratio: the sum of squared deviations of the daily returns from the arithmetic average return divided by the number of returns minus one), beta of the stock (covariance of the daily returns of the stock with the daily returns of the market and then divided by the variance of the daily return of the market) and the Sharpe Ratio (as the ratio of the difference between the average daily return of the stock and the average risk-free rate divided by the standard deviation of the daily returns of the stock) of the equity are presented for each period separately. The excess daily return is the daily average return minus the daily average stock market (S&P500) return

Source(s): Authors' own work