Treynor Ratio

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).

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).