Hedge Fund Videos | 30+ Free Videos on Hedge Funds

Treynor Ratio

Treynor Ratio

Treynor Ratio Definition

treynor ratioSometimes 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.

Definition Courtesy of HedgeCo

Treynor Ratio Calculation:


(Average Portfolio Return - Average Risk Return of Risk Free Instrument ) / Beta of the Portfolio


Here is a white paper on the Treynor Ratio.

Read dozens of additional articles like this within the guide to Hedge Fund Terms.

- Richard

Subscribe To this Blog via Email Or RSS

Top 5 Related Articles:

1. Credit Default Swaps
2. Master-Feeder Fund Structure
3. Hedge Fund High Water Mark Definition
4. Hedge Fund Trends Video
5. Active Premium

Permanent Link: Treynor Ratio

Tags: Treynor Ratio, Treynor Ratio Definition, Treynor ratio, Treynor Ratio Calculation, Treynor Ratio Explanation

Link to This Resource: Treynor Ratio

http://richard-wilson.blogspot.com/2008/02/treynor-ratio.html

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Redesign by HedgeCo Website Creation