Weighted Criteria and comparing different investments

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In summary, the conversation discusses the process of creating a spreadsheet to compare different investments in cryptocurrencies. Each investment is evaluated based on 9 criteria, with each criterion being worth 0-5 points. The individual would like to rank the investments by their total score, but needs help assigning weights to the criteria based on their level of importance. The conversation also mentions the possibility of using the sumproduct() function.
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rbv27
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I am trying to make a spread sheet that compares different investments (cryptocurrencies). So far each investment has 9 criteria. I have normalized each criteria to be worth 0-5 points. I would like to be able to rank each investment based on their total score depending on different criteria. I need to assign weights to different criteria but what is the correct method of assigning weights based on level of importance? Please help.

example: below are the criteria i am using listed in order from most important to least important.
Type of coin, idea, is there a prototype?, team, market cap, roi since listing, months since listing, advisors, community
coin:
 
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  • #2
Pretty hard to say what you can do, based on the very vague description.

Have you met the sumproduct() function?
 

FAQ: Weighted Criteria and comparing different investments

What is weighted criteria and how is it used in comparing different investments?

Weighted criteria is a method used to compare different investments based on specific factors or attributes that are important to the investor. These criteria are assigned weights, or levels of importance, and are used to evaluate each investment option. The weighted criteria approach allows for a more thorough and systematic analysis of investments, helping investors make more informed decisions.

What are some common weighted criteria used in comparing investments?

Some common weighted criteria used in comparing investments include return on investment (ROI), risk level, liquidity, management fees, and tax implications. Other criteria may include diversification, market trends, and the overall financial stability of the investment.

How is the weight of each criteria determined in the weighted criteria approach?

The weight of each criteria is determined by the investor based on their personal preferences and financial goals. Some investors may prioritize a high return on investment, while others may prioritize low risk. The weights assigned to each criteria may also change depending on the specific investment options being considered.

Can weighted criteria be used to compare investments of different types?

Yes, weighted criteria can be used to compare investments of different types, such as stocks, bonds, real estate, and commodities. However, the criteria and weights assigned may vary depending on the type of investment being considered.

Are there any limitations to using the weighted criteria approach in comparing investments?

While the weighted criteria approach can provide a more comprehensive analysis of investments, it may not take into account external factors that may affect the performance of an investment, such as economic conditions or political events. Additionally, the weights assigned to each criteria are based on the investor's personal preferences and may not necessarily reflect the true value of each factor.

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