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 and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted returns of an investment portfolio. The Treynor ratio employs beta and measures ...

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 ...