mentu | introduction to treynor ratio

Treynor Ratio Explained – Measuring Risk-Adjusted Returns

In this 4-minute video, we explain the Treynor Ratio, a key metric used to assess risk-adjusted returns relative to systematic risk (beta). Learn how the Treynor Ratio helps investors evaluate portfolio performance, compare investments, and optimize asset allocation.

What You’ll Learn:
• What is the Treynor Ratio? – Understanding its role in investment analysis.
• Treynor Ratio Formula & Calculation – Step-by-step breakdown with examples.
• Interpreting the Treynor Ratio – What does a high or low Treynor Ratio mean?
• Treynor Ratio vs. Sharpe Ratio – Key differences and when to use each.
• Real-World Applications – How fund managers and investors use the Treynor Ratio.

This video is perfect for investors, finance students, and professionals looking to enhance their understanding of portfolio management, risk-adjusted performance, and investment decision-making.

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