Investors and academics have long sought for a way to compare the performance of portfolios on a risk-adjusted basis. If you can adjust for risk, you can directly compare the performance of portfolios ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

You can do this with any fund for which you can find a beta, the measure of market-related risk. Calculate a fund's return in excess of the return on short-term Treasury bills, then divide that by the ...

The Treynor Ratio is an easy-to-calculate ratio that measures portfolio performance on a risk-adjusted basis. Investors and academics have long sought for a way to compare the performance of ...