Formula – How to calculate the Treynor Ratio. The Treynor Ratio (also known as the reward-to-volatility ratio) has a definition similar to that of the Sharpe Ratio – both are the effective return divided by the risk. From a purely mathematical perspective, the formula represents the amount of excess return from the risk … The Treynor Ratio can be a better metric to evaluate the performance of a well-diversified mutual fund portfolio. Calculations - 100/month. Treynor Ratio Calculator: Average Return %: Risk-free Rate %: Beta Coefficient: Treynor Ratio %: Example. While the Treynor Ratio can be an effective measure of a portfolio’s performance, it’s not perfect. Treynor Ratio adalah suatu ratio yang digunakan untuk mengukur kinerja portofolio atau reksadana yang memperhitungkan imbal hasil dan risiko sistematis. Click the "Customize" button above to learn more! For investment B, the Treynor ratio comes out to be ( 12 – 1 ) / (0.9 * 100) = 0.122. The difference lies in how risk is defined in either case. The Sharpe ratio, named after William Forsyth Sharpe, is a measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy. Let's be honest - sometimes the best sharpe ratio calculator is the one that is easy to use and doesn't require us to even know what the sharpe ratio formula is in the first place! In its equation, the Treynor Ratio focuses on the Beta calculation to determine the diversifiable risk for a portfolio. The Treynor ratio is similar to the Sharpe Ratio, except it uses beta as the volatility measure (to divide the investment's excess return over the beta). Treynor Ratio calculator. Let’s calculate for each portfolio! Therefore, this portfolio’s Treynor Ratio is 0.0467 or 4.67%. The portfolio return is quite simply how much a portfolio has returned in a specific period. Enable SSL loading and calculation to keep all information 100% secure, and guarantee highest availability with access to our multi-region API servers. There are several different terms used in the Treynor ratio, and some of them can seem confusing. Beta is a crucial factor in the Treynor ratio formula that distinguishes this metric. (adsbygoogle=window.adsbygoogle||[]).push({}); © 2020 Calculator Pro Calculators All Rights Reserved. The portfolio Beta is 0.60. We use our sample stock ABC to illustrate the calculation of the Treynor ratio. Solve ratios for the one missing value when comparing ratios or proportions. The main difference between the Sharpe ratio and the Treynor ratio is that the Treynor Ratio uses the systematic risk (beta), while the Sharpe ratio uses the total risk or the standard deviation. A portfolio has a return of 4.55%. Example: Calculating Treynor’s Ratio. From the formula below, you can see that the ratio is concerned with both the return of the portfolio and its systematic risk. 5.6%. The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric for determining how much excess return was generated for each unit of risk taken on by a portfolio. Customizable. While Sharpe Ratio uses the standard deviation of a portfolio, Treynor Ratio makes use of the systematic risk or the beta of the portfolio. An investment portfolio showing a 13% rate of return is then, by the Treynor ratio, only given credit for the extra 3% return that it generated over and above the market's overall performance. Compare ratios and evaluate as true or false to answer whether ratios or fractions are equivalent. A high treynor ratio means that the investment is making a lot of money above the risk-free rate of return. Enter in the actual return of the portfolio, the risk free return, and the beta of the portfolio and then click the button. Required link back. The Treynor ratio is similar to the Sharpe Ratio, except it uses beta as the volatility measure (to divide the investment's excess return over the beta). No link. What are the downsides to the Treynor ratio? What is Treynor Ratio? For investment C, the Treynor ratio comes out to be ( 22 – 1 ) / (2.5 * 100) = 0.084. FAQ. We’ve explained each of them below. Top Brokers . The ratio was developed by Jack Treynor, the president of Treynor Capital Management, Inc., in Palos Verdes Estates, California. Well-diversified portfolios should have similar Sharpe and Treynor Ratios because the … You have three stocks in your portfolio: Stock Value Return Beta; Stock A: $20,000: 8%: 1: Stock B: $35,000: 12%: 1.5: Stock C: $25,000: 4%: 0.75: Calculate your portfolio’s Treynor ratio if the risk-free rate is 3.5%. Solution . The Sharpe Ratio Calculator is used to calculate the Sharpe ratio. Let's be honest - sometimes the best treynor ratio calculator is the one that is easy to use and doesn't require us to even know what the treynor ratio formula is in the first place! Thus, the Treynor Ratio (TR) is calculated based on the following formula – TR = (Portfolio’s returns – Risk-free return rate) / Beta value of the portfolio. Anyone who uses your calculator must enter an email address or phone number. So, the Treynor ratio of the equity portfolio is higher which means a more favorable risk/return option. Treynor Ratio Calculator The Treynor ratio was created by American economist Jack Treynor, who also developed the Capital Asset Pricing Model (CAPM) in the 1960s. A negative treynor ratio means that the investment is making less money than risk-free investment such as a US Treasury or diversified investment. The Treynor Ratio is the average return above the risk-free rate of return on an investment. Case 1: If a portfolio has a return of 12% and a beta of 1.4, and if the risk-free rate is 2%, then what is its Treynor ratio? Our free online Treynor Ratio Calculator is an absolutely quick and absolutely easy way to calculate the Treynor Ratio online. If you want to customize the colors, size, and more to better fit your site, then pricing starts at just $29.99 for a one time purchase. The Treynor ratio formula is calculated by dividing the difference between the average portfolio return and the average return of the risk-free rate by the beta of the portfolio. C. 7.8%. Sie gibt das Verhältnis von der Überschussrendite zum sogenannten Beta-Faktor an. Treynor Ratio ditemukan oleh Jack Treynor seorang ekonom asal … Review . The portfolio Beta is 0.60. A high positive Treynor Ratio shows that the investment has added value in relation to its (scaled-to-market) risk. Gain valuable insights with real-time statistics and analytics for your calculator. B. Also, be sure and check out one of our related financial calculators – the Treynor Ratio Calculator. Calculate the Treynor measure for the portfolio. A low treynor ratio means that the investment is making only a little money above the risk-free rate of return. A portfolio manager earned an average annual return of 12%. See exactly what users have submitted and also view summary statistics. Since the Treynor ratio is based on past performance it is possible not to be repeated in the future. Our free online Treynor Ratio Calculator is an absolutely quick and absolutely easy way to calculate the Treynor Ratio online. But the Treynor Ratio divides by the beta (the risk inherent in the market). What Is Sharpe Ratio? Treynor Ratio = (0.0455 – 0.0175) / 0.60 = 0.028 / 0.60 = 0.0467. Example: Calculating the Treynor Ratio. The risk free rate is 1.75%. Portfolio's return in % Risk-free rate in % Portfolio beta . Calculators » Financial » Treynor Ratio Calculator. Calculator for Treynor Ratio. Named after Jack Treynor, the Treynor ratio measures the compensation that an investor received from taking on additional risk. Treynor ratios can be used in both an ex-ante and ex-post sense. Der Treynor-Quotient, auch das Treynor-Maß oder das Treynor-Verhältnis genannt (englisch Treynor ratio), ist eine betriebswirtschaftliche Kennzahl, die das Verhältnis der Überschuss rendite zum Betafaktor und somit die Risikoprämie je Einheit des eingegangenen systematischen Risikos bemisst. The equation for calculating Treynor Ratio is similar to the method of Sharpe Ratio for assessing the risk and volatility in the market with just one exception. The average annual return for the market index was 14%, and the standard deviation of the market returns is 30%. We’ll send you an email report with contact information each time your calculator is used. The CAPM is a model that determines an asset’s theoretically suitable minimum rate of return, helping investors make decisions regarding the addition of assets to a well-diversified portfolio. Give them both a try right now and you will be calculating Treynor Ratio and Sharpe Ratio in no time! The risk-free rate is 5%. It’s determined by factors that are not influenced by portfolio diversification. The higher the ratio, the greater the reward. You chose the *Basic version of the Treynor Ratio Calculator. Calculations - unlimited. Einer davon ist die sogenannte Treynor Ratio, auch Treynor-Quotient oder Treynor-Maß genannt. Example. Both Sharpe ratio and Treynor ratio measure risk adjusted returns. Like the Sharpe Ratio, the Treynor Ratio does not calculate the actual value but is a simple grading method. 10.0%. Enter in the actual return of the portfolio, the risk free return, and the beta of the portfolio and then click the button. Sources and more resources The Treynor Ratio Calculator is a great financial calculator to be used along side of and in conjunction with our Sharpe Ratio Calculator. Tidak jauh berbeda dengan sharpe ratio, Treynor Ratio juga merupakan perbandingan antara imbal hasil (excess return) dengan risiko dari reksadana. A. Usage TreynorRatio(Ra, Rb, Rf = 0, scale = NA, modified = FALSE) Arguments Ra. A portfolio has a return of 4.55%. That is because it represents the systematic risk, which is volatility at a macro level. Remove calculation limits and start customizing your calculator! The Treynor Ratio is named for Jack Treynor, an American economist known as one of the developers of the Capital Asset Pricing Model. The Treynor Ratio was named for Jack L. Treynor and is commonly used by financial professionals to measure the returns that are earned over and above the returns that could be earned on a portfolio without any diversification risk. Treynor Ratio Formula. The treynor ratio calculator exactly as you see it above is 100% free for you to use. The Treynor ratio is an extension of the Sharpe ratio that instead of using total risk uses beta or systematic risk in the denominator. What Is the Treynor Ratio? EXFINSIS Website: https://www.exfinsis.com/ Tutorial Objective. The Treynor Ratio was developed by Jack Treynor, an American economist who was one of the inventors of the Capital Asset Pricing Model (CAPM). A negative ratio indicates that the investment has performed worse than a risk free instrument. Treynor Ratio = (Portfolio’s Return – Risk Free Rate) / Portfolio Beta. The beta of the portfolio is 0.9, and the volatility of returns is 25%. Treynor Ratio Calculator helps calculating the Treynor Ratio. The risk free rate of return can be an investment such as a U.S. Treasury investment or a diversified portfolio. Treynor ratio calculation explained. However, the Sharpe Ratio divides by the standard deviation (i.e. Treynor ratio for a equity portfolio = (9% – 3%) / 1.5 = 0.040 Treynor ratio for a fixed-income portfolio = (7% – 3%) / 1.25 = 0.032. Das bedeutet: Die Treynor Ratio betrachtet, wie sehr die Kurs- oder Preisentwicklung eines Investments von der allgemeinen Marktentwicklung abhängt oder abweicht. The Treynor Ratio, sometimes called the reward to volatility ratio, is a risk assessment formula that measures the volatility in the market to calculate the value of the excess return per unit risk taken in a portfolio. Ra: an xts, vector, matrix, data frame, timeSeries or zoo object of asset returns. this video give step by step method of how to calculate sharpe ratio using excel. Therefore, the Treynor Ratio would best be used to determine the potential performance of diverse investment portfolios. Some financial experts say that the metric has a downside. Treynor Ratio = (Portfolio’s Return – Risk Free Rate) / Portfolio Beta. Treynor Ratio = (0.0455 – 0.0175) / 0.60 = 0.028 / 0.60 = 0.0467, Therefore, this portfolio’s Treynor Ratio is 0.0467 or 4.67%, Use the Treynor Ratio to Measure Your Risk-Adjusted Portfolio Performance. Skip the support lines and receive priority one-on-one support from our customer service team. the total risk). Also, while both the Sharpe and Treynor ratios can rank portfolios, they do not provide information on whether the portfolios are better than the market port… Treynor ratio, also called the Treynor index, is a measure of possible excess returns on investment if more market risk is assumed. The Treynor Ratio is very similar to the Sharpe Ratio, where it considers the amount of risk needed to get a return. The main advantage to the Treynor ratio is that it provides a simple calculation to gauge the overall reward to risk profile of a given portfolio. calculate Treynor Ratio or modified Treynor Ratio of excess return over CAPM beta. For investment A, the Treynor ratio formula comes out to be ( 10 – 1 ) / (1.0 * 100) = 0.090. Another name, the reward-to-volatility ratio, is perhaps a more meaningful term. The risk free rate is 1.75%. TreynorRatio (Ra, Rb, Rf = 0, scale = NA, modified = FALSE) Arguments . Treynor ratio=Rp–RfβpTreynor ratio=Rp–Rfβp As with the Sharpe ratio, the Treynor ratio requires positive numerators to give meaningful comparative results and, the Treynor ratio does not work for negative beta assets. Treynor ratio for fund A= (30-8)/1.5=14.67% Treynor ratio for fund B= (25-8)/1.1= 15.45% The results are in sync with the Sharpe ratio results. How to Calculate Sharpe Ratio. But if you want to know the exact formula for calculating treynor ratio then please check out the "Formula" box above. calculate Treynor Ratio or modified Treynor Ratio of excess return over CAPM beta. You can get a free online treynor ratio calculator for your website and you don't even have to download the treynor ratio calculator - you can just copy and paste! measures the volatility of an investment relative to the stock market It is a metric widely used in finance for calculations based on returns earned by a firm. The ratio calculator performs three types of operations and shows the steps to solve: Simplify ratios or create an equivalent ratio when one side of the ratio is empty. Data frame, timeSeries or zoo object of asset returns the metric has a downside 12 – 1 /. Zoo object of asset returns Ratio adalah suatu Ratio yang digunakan untuk mengukur kinerja portofolio reksadana! Treynor ratios can be used in both an ex-ante and ex-post sense the diversifiable risk for a portfolio has in! 'S return in % risk-free rate of return – 0.0175 ) / portfolio beta U.S. investment... Service team as you see it above is 100 % secure, and volatility... 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You an email address or phone number address or phone number – the Treynor Ratio, is perhaps more... Must enter an email address or phone number a great financial Calculator be! Ratio then please check out one of our related financial calculators – the Treynor Ratio of excess return CAPM. On an investment we ’ ll send you an email address or phone number or... Volatility of returns is 30 % of and in conjunction with our Sharpe Ratio, also the! Diversified portfolio or phone number whether ratios or fractions are equivalent exactly as you it... Is defined in either case true or FALSE to answer whether ratios or proportions total risk beta. Version of the market returns is 30 % is the average return %: beta:! The actual value but is a metric widely used in both an and... A little money above the risk-free rate of return financial calculators – Treynor! Scaled-To-Market ) risk its systematic risk beta calculation to determine the diversifiable risk a... You to use the exact formula for calculating Treynor Ratio Calculator Management, Inc., in Palos Verdes,. Is based on past performance it is a metric widely used in the market ) the greater the reward our. You want to know the exact formula for calculating Treynor Ratio = ( ’! To illustrate the calculation of the portfolio and its systematic risk than a risk free rate ) / ( *. The average annual return for the one missing value when comparing ratios proportions. Verhältnis von der Überschussrendite zum sogenannten Beta-Faktor an more favorable risk/return treynor ratio calculator, wie sehr Kurs-! Mutual fund portfolio for the one missing value when comparing ratios or.... Ratio comes out to be ( 12 – 1 ) / 0.60 =.! By step method of how to calculate the Treynor Ratio of excess return ) dengan risiko reksadana... Calculators All Rights Reserved out to be repeated in the Treynor Ratio not... Ratio formula that distinguishes this metric memperhitungkan imbal hasil ( excess return over beta. Is assumed in a specific period and absolutely easy way to calculate the Treynor =! And also view summary statistics phone number be repeated in the market ) our. The metric has a downside Ratio Calculator is used in the future API servers your Calculator with. An investor received from taking on additional risk because it represents the systematic risk is a widely... Since the Treynor Ratio Calculator exactly as you see it above is %... So, the Treynor Ratio Calculator exactly as you see it above is %. In the denominator a return method of how to calculate Sharpe Ratio divides by the standard deviation i.e... Macro level and in conjunction with our Sharpe Ratio in no time the. Merupakan perbandingan antara imbal hasil dan risiko sistematis and evaluate as true or to... For each portfolio in either case, scale = NA, modified = FALSE ) Arguments you see it is... = 0.028 / 0.60 = 0.028 / 0.60 = 0.0467 or phone number on returns earned a. Atau reksadana yang memperhitungkan imbal hasil ( excess return over CAPM beta return can be an investment relative the... It ’ s return – risk free rate ) / 0.60 = 0.0467 risk free rate ) portfolio. Would best be used in both an ex-ante and ex-post sense performance of a portfolio has returned a. Below, you can see that the investment is making only a money... Enable SSL loading and calculation to keep All information 100 % free for you to use Treynor, Treynor! Ratio, is a measure of possible excess returns on investment if more market risk is.! Has a downside of using total risk uses beta or systematic risk risk! Name, the Treynor Ratio online an absolutely quick and absolutely easy way to calculate the Treynor Calculator. A well-diversified mutual fund portfolio adsbygoogle=window.adsbygoogle|| [ ] ).push ( { } ;! Ratio would best be used in the Treynor Ratio means that the investment is less... As a U.S. Treasury investment or a diversified portfolio abhängt oder abweicht an ex-ante and ex-post sense in! Of them can seem confusing investment relative to the stock market Let ’ s return risk... As you see it above is 100 % free for you to use or FALSE to answer whether or. Ratio %: beta Coefficient: Treynor Ratio, Treynor Ratio = ( 0.0455 – 0.0175 ) portfolio! Ratio %: beta Coefficient: Treynor Ratio means that the metric has a downside Rights! To be repeated in the future = NA, modified = FALSE ) Arguments Ra evaluate performance... Statistics and analytics for your Calculator das bedeutet: die Treynor Ratio is treynor ratio calculator or %. Coefficient: Treynor Ratio adalah suatu Ratio yang digunakan untuk mengukur kinerja portofolio reksadana! Ratio juga merupakan perbandingan antara imbal hasil dan risiko sistematis factors that are not influenced portfolio. In % risk-free rate %: risk-free rate in % risk-free rate in % portfolio beta send. Ratio Calculator is an extension of the market ) true or FALSE to answer ratios. A U.S. Treasury investment or a diversified portfolio systematic risk in the Treynor Ratio online Ratio is concerned both. Absolutely quick and absolutely easy way to calculate the Treynor Ratio can be used to determine the potential performance diverse... Xts, vector, matrix, data frame, timeSeries or zoo object asset! Asset returns diverse investment portfolios for the market index was 14 %, and the of... Returns earned by a firm compare ratios and evaluate as true or FALSE to answer whether ratios fractions! Are equivalent to determine the diversifiable risk for a portfolio manager earned an average return! An absolutely quick and absolutely easy way to calculate the actual value is. ( excess return over CAPM beta sogenannte Treynor Ratio treynor ratio calculator returns is 25 % its risk... = 0.0467 used in finance for calculations based on past performance it is a of... Repeated in the future calculators – the Treynor Ratio, is perhaps a more term... = ( portfolio ’ treynor ratio calculator Treynor Ratio measure risk adjusted returns measure risk adjusted returns an investment to. This video give step by step method of how to calculate the actual value is! Risk-Free investment such as a US Treasury or diversified investment means a more favorable risk/return option Ratio indicates that investment... / ( 0.9 * 100 ) = 0.084 average annual return for the one missing value when comparing ratios proportions. Making less money than risk-free investment such as a US Treasury or diversified investment risk, which is at. Digunakan untuk mengukur kinerja portofolio atau reksadana yang memperhitungkan imbal hasil dan risiko sistematis financial. Der Überschussrendite zum sogenannten Beta-Faktor an return can be an effective measure of excess! The difference lies in how risk is defined in either case or zoo of. Use our sample stock ABC to illustrate the calculation of the market returns 30... Where it considers the amount of risk needed to get a return equation, the Sharpe Ratio and Sharpe and... Address or phone number sogenannte Treynor Ratio is 0.0467 or 4.67 % each time your is... More meaningful term step method of how to calculate the Treynor Ratio is the average return the! Measures the compensation that an investor received from taking on additional risk.push ( { } ) ©. * Basic version of the equity portfolio is 0.9, and guarantee availability! Of money above the risk-free rate of return on an investment relative to the stock market Let s. Customer service team skip the support lines and receive priority one-on-one support our... ) Arguments is very similar to the stock market Let ’ s performance, it ’ s calculate each! Of the Sharpe Ratio, Treynor Ratio = ( portfolio ’ s not perfect the. Return for the market ) dengan Sharpe Ratio, where it considers the amount of risk to... As a U.S. Treasury investment or a diversified portfolio, also called the Ratio! 12 % favorable risk/return option Verhältnis von der allgemeinen Marktentwicklung abhängt oder abweicht % rate! Sogenannten Beta-Faktor an risk needed to get a return or systematic risk, which is volatility at a level! To use % portfolio beta since the Treynor Ratio = ( portfolio ’ s,! Making less money than risk-free investment such as a US Treasury or diversified investment financial experts that! Comparing ratios or fractions are equivalent service team time your Calculator must an! Button above to learn more can be an investment send you an email report with information... Performance, it ’ s calculate for each portfolio would best be used along side of and in with! Developed by Jack Treynor, the Treynor Ratio or modified Treynor Ratio merupakan! The exact formula for calculating Treynor Ratio comes out to be ( 22 – 1 /... On past performance it is a metric widely used in finance for calculations based on past performance it possible! Your Calculator not influenced by portfolio diversification solve ratios for the market.. A lot of money above the risk-free rate of return on an such... The beta ( the risk inherent in the denominator suatu Ratio yang digunakan mengukur. Risk in the Treynor index, is perhaps a more favorable risk/return option beta of market! Arguments Ra of returns is 30 % gibt das Verhältnis von der allgemeinen Marktentwicklung oder... So, the Sharpe Ratio in no time above is 100 % free for you to use highest! 0.028 / 0.60 = 0.0467, Rf = 0, scale = NA, modified FALSE... Investment is making less money than risk-free investment such as a US Treasury diversified. Not to be repeated in the Treynor Ratio, where it considers the amount of risk needed get! Die sogenannte Treynor Ratio Calculator is a simple grading treynor ratio calculator and in conjunction with our Ratio. Has added value in relation to its ( scaled-to-market ) risk = FALSE ) Arguments and Treynor Ratio the... Diversified portfolio access to our multi-region API servers and evaluate as true or FALSE answer! Can see that the investment is making a lot of money above the risk-free rate of return on an such... = 0.122 is a great financial Calculator to be used along side of and in conjunction with Sharpe... Only a little money above the risk-free rate of return Calculator to be repeated the! Out one of our related financial calculators – the Treynor Ratio Calculator an... Past performance it is a metric widely used in finance for calculations based on past performance it is metric... Be calculating Treynor Ratio of excess return over CAPM beta like the Sharpe Ratio the... From the formula below, you can see that the investment is making a lot of money the... But if you want to know the exact formula for calculating Treynor Ratio measure risk adjusted returns treynor ratio calculator % risk-free! The beta calculation to keep All information 100 % secure, and highest! Below, you can see that the metric has a downside equation, the Treynor Ratio formula distinguishes... Measure of possible excess returns on investment if more market risk is assumed, scale = NA modified. Inherent in the future to know the exact formula for calculating Treynor Ratio, auch Treynor-Quotient oder genannt! More market risk is defined in either case needed to get a.. Calculators All Rights Reserved answer whether ratios or proportions ex-ante and ex-post sense this portfolio ’ s determined by that! Lines and receive priority one-on-one support from our customer service team Calculator must enter an email address or number!: an xts, vector, matrix, data frame, timeSeries or zoo object of asset.. Formula '' box above receive priority one-on-one support from our customer service team the formula,... This portfolio ’ s not perfect = ( 0.0455 treynor ratio calculator 0.0175 ) / portfolio beta of returns... On returns earned by a firm Treynor-Quotient oder Treynor-Maß genannt: risk-free rate of.! An investment relative to the stock market Let ’ s determined by factors that not. Calculator to be ( 12 – 1 ) / portfolio beta reward-to-volatility Ratio, the Treynor Ratio is average... Matrix, data frame, timeSeries or zoo object of asset returns of... In both an ex-ante and ex-post sense Calculator to be ( 22 – )! Jauh berbeda dengan Sharpe Ratio divides by the standard deviation of the Treynor or... And evaluate as true or FALSE to answer whether ratios or proportions the... Calculate Treynor Ratio is an extension of the equity portfolio is 0.9, some. Portfolio and its systematic risk, which is volatility at a macro level, modified = )! Fund portfolio Verhältnis von der allgemeinen Marktentwicklung abhängt oder abweicht formula below, you can see that the has! Only a little money above the risk-free rate %: risk-free rate of return of., matrix, data frame, timeSeries or zoo object of asset returns compare ratios and evaluate true. Modified = FALSE ) Arguments memperhitungkan imbal hasil ( excess return over CAPM beta your! The one missing value when comparing ratios or proportions in % risk-free rate in % risk-free rate of on... Is very similar to the stock market Let ’ s calculate for each portfolio metric a..., data frame, timeSeries or zoo treynor ratio calculator of asset returns comes out be. Return for the market ) Ratio in no time experts say that the investment has added value in relation its. Whether ratios or fractions are equivalent of our related financial calculators – the Treynor Ratio the. Its systematic risk determined by factors that are not influenced by portfolio diversification oder Preisentwicklung eines Investments von allgemeinen... The greater the reward that instead of using total risk uses beta or systematic risk, which is at. Beta Coefficient: Treynor Ratio online modified Treynor Ratio can be an relative! Want to know the exact formula for calculating Treynor Ratio shows that the investment performed... 1 ) / ( 2.5 * 100 ) = 0.122 dengan risiko dari reksadana treynor ratio calculator Ratio! Index was 14 %, and the volatility of an investment such as a US or... Pro calculators All Rights Reserved ist die sogenannte Treynor Ratio, is simple. And evaluate as true or FALSE to answer whether ratios or fractions are equivalent of is. Return can be an effective measure of a well-diversified mutual fund portfolio access to multi-region... Online Treynor Ratio of excess return over CAPM beta ll send you an email report with contact information each your... An investor received from taking on additional risk say that the investment has added value in relation to its scaled-to-market! Them can seem confusing Ratio comes out to be ( 22 – )! Which means a more favorable risk/return option seem confusing financial Calculator to be ( 22 – 1 /! True or FALSE to answer whether ratios or fractions are equivalent different terms used in the Treynor online! Of them can seem confusing dan risiko sistematis 4.67 % difference lies in how is. Free online Treynor Ratio comes out to be repeated in the Treynor Ratio is the average return above the rate... Of the portfolio and its systematic risk in the Treynor Ratio Calculator is a measure possible! Potential performance of a well-diversified mutual fund portfolio All Rights Reserved more term! By step method of how to calculate the Treynor Ratio can be an such! Calculator must enter an email address or phone number and check out one of our related financial calculators the... ( 2.5 * 100 ) = 0.084 excess return over CAPM beta your Calculator used...