Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New ...

The Treynor ratio offers a lens through which investors can evaluate the performance of a portfolio relative to the risk it ...

Developed by American economist Jack Treynor, the Treynor Ratio is a way to measure how well a portfolio rewarded investors for the amount of risk it took on, over a certain time period.

Under such circumstances, risk-loving investors should consider parking their money in mutual funds with high Treynor ratios. Notably, the Treynor ratio equates excess returns over the risk-free ...

Mutual fund performance. Journal of Business 39 (January): 119–38. ———. 1994. The Sharpe ratio. Journal of Portfolio Management 21 (Fall): 49–58. Treynor, J. L. 1965. How to rate management of ...

The Treynor ratio would be calculated as follows: Treynor ratio = (9 – 3) / 1.2 = 0.5. This indicates the portfolio is earning 0.5 points of excess return. What Is the Sharpe Ratio and How Is It ...