Treynor Ratio Definition, Formula, What It Shows
The Treynor Ratio can be compared and contrasted with metrics such as the Sharpe Ratio, Jensen’s Alpha, and Sortino Ratio to provide a more holistic understanding of an investment’s performance. A higher Treynor Ratio indicates a better risk-adjusted return for the portfolio. Conversely, a lower ratio suggests that the portfolio’s returns are not adequate given …
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