Q » What is Treynor ratio?

Steven

06 Dec, 2025

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A » The Treynor ratio is a performance metric that evaluates an investment's returns relative to its systematic risk, represented by beta. It is calculated by subtracting the risk-free rate from the portfolio's return and dividing the result by the portfolio's beta. This ratio helps investors assess how well a portfolio compensates for market risk, with a higher Treynor ratio indicating better risk-adjusted performance.

Michael

06 Dec, 2025

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A »The Treynor ratio is a risk-adjusted performance metric that measures the excess return of a portfolio over the risk-free rate, relative to its systematic risk (beta). It helps investors evaluate a portfolio's performance by comparing its returns to the market's returns, adjusted for the level of risk taken.

David

06 Dec, 2025

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