Treynor Ratio
Risk & PortfolioRisk-adjusted return measure using beta (systematic risk) instead of total risk. Better for diversified portfolios.
Formula
Treynor Ratio = (Rp - Rf) / βp
Why it matters
Use for comparing well-diversified portfolios. Measures return per unit of market risk taken.
Indian example
Related terms
Learn the concept
Mutual Funds, ETFs, AIFs →From the research
Methodology
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