How to Use the Treynor Ratio: Definition and Formula

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows how much return an investor can expect for each unit of market risk. It offers insight into how efficiently a portfolio’s manager […] The post How to Use the Treynor Ratio: Definition and Formula appeared first on SmartReads by SmartAsset.