6 Aug 2018

Treynor Ratio

Finance feed by:

CA Abhishek Sinha
M.com,CA,CS
CA in Practice
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   •    14 Year 4 Month  experience

Treynor ratio shows the risk adjusted performance of the fund. Here the denominator is the beta of the portfolio. Thus, it takes into account the systematic risk of the portfolio.

ack Treynor extended the work of William Sharpe by formulating treynor ratio. Treynor ratio is similar to Sharpe ratio, but the only difference between the ratios is that of the denominator.

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