The risk-free rate was initially used in the formula ... The Sortino and the Treynor The standard deviation in the Sharpe ratio's formula assumes that price movements in either direction are ...

The formula is: Treynor Ratio = (Portfolio Return – Risk-Free Rate) / Beta A higher Treynor ratio suggests the portfolio is delivering more return per unit of market risk, while a lower ratio ...

Funds with high turnover ratios can incur greater costs in trading fees and commissions and may generate short-term capital gains, which are taxable at an investor's ordinary income rate. Formula ...

Named after American economist Jack Treynor, this ratio is calculated by dividing the excess return of a portfolio over the risk-free rate by its beta. A high Treynor ratio figure suggests that ...