---
title: Treynor Ratio
description: The Treynor Ratio, also known as the Reward to Volatility Ratio measures the return generated in excess of a riskless investment (measured by the risk free rate), per unit of market risk (measured by
---

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# Treynor Ratio

![](https://www.allocator.com/hubfs/image-png-Nov-25-2022-03-28-56-0994-PM.png)

The Treynor Ratio, also known as the Reward to Volatility Ratio measures the return generated in excess of a riskless investment (measured by the risk free rate), per unit of market risk (measured by the beta of the benchmark).

 

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