Treynor Ratio Calculator

Calculate the Treynor ratio (excess return per unit of systematic risk) for investment portfolios. Compare Treynor ratios across fully diversified portfolios where idiosyncratic risk has been eliminated through diversification.

Principal ($)
Annual Rate (%)
Years
Compounding / Year
$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.
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How It Works

Calculate the Treynor ratio (excess return per unit of systematic risk) for investment portfolios. Compare Treynor ratios across fully diversified portfolios where idiosyncratic risk has been eliminated through diversification

Each component has a specific meaning:

  • Fully diversified portfolios where idiosyncratic risk has been eliminated through diversification — The fully diversified portfolios where idiosyncratic risk has been eliminated through diversification recorded for the scenario being assessed.

Note: Interpret the treynor ratio result against the thresholds and context described above.

How to Use

Enter the fully diversified portfolios where idiosyncratic risk has been eliminated through diversification for the scenario you are assessing. Calculate the Treynor ratio (excess return per unit of systematic risk) for investment portfolios. Compare Treynor ratios across fully diversified portfolios where idiosyncratic risk has been eliminated through diversification. Use the treynor ratio result to inform your calculation.

Frequently Asked Questions