Treynor Ratio: What It Is, What It Shows, Formula To Calculate It
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. Systematic risk, also known as market risk, is the risk inherent in the overall market or economic system. For example, if the Treynor ratio is … Read more