Treynor Ratio

Returns the Treynor ratio, measuring excess return per unit of market (beta) risk.

Examples

=TreynorRatio()

When to Use

  • Market risk-adjusted performance
  • Diversified portfolio evaluation
  • Manager comparison

When NOT to Use

Scenario Use Instead
Total risk adjustment SharpeRatio()
Downside risk SortinoRatio()

Common Issues & FAQ

Q: When use Treynor vs Sharpe? A: Treynor for diversified portfolios; Sharpe for total portfolio.

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