Q » What is Treynor ratio?
06 Dec, 2025
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.
06 Dec, 2025
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