Treynor Ratio Definition

Below please find a definition of “Treynor Ratio”

Financial Analysis Training & Glossary TermsTreynor Ratio: Sometimes referred to the in the hedge fund industry as the return vs. volatility ratio the Treynor Ratio is a measure of the excess return per unit or risk, where the excess return is defined as the difference between the portfolio’s return and the risk-free rate of return over the same period.

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