The Treynor ratio offers a lens through which investors can evaluate the performance of a portfolio relative to the risk it assumes from broader market movements. When compared with the Sharpe ...

Thus, the Treynor ratio produces a result that reflects the number of excess returns attained by a strategy per unit of systematic risk. Since the Treynor ratio bases portfolio returns on market ...

Definition: Treynor ratio shows the risk adjusted performance of the fund. Here the denominator is the beta of the portfolio. Thus, it takes into account the systematic risk of the portfolio.

Learn More Alpha vs. Beta: What's the Difference? What's the Difference Between an Investment’s Sharpe Ratio and its Treynor Ratio? Both ratios exist to try and quantify the risk-adjusted return ...