Investment

Ratio de Treynor

A risk-adjusted return metric that calculates excess return earned per unit of systematic risk (beta), measuring performance relative to market risk.

Quick answer: A risk-adjusted return metric that calculates excess return earned per unit of systematic risk (beta), measuring performance relative to market risk.

This term page is part of the Protermify Finance glossary and is published as static HTML for fast indexing and clear language coverage.

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Quick answer

A risk-adjusted return metric that calculates excess return earned per unit of systematic risk (beta), measuring performance relative to market risk.

Why it matters

Ratio de Treynor matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Ratio de Treynor?

In this glossary, Ratio de Treynor refers to: A risk-adjusted return metric that calculates excess return earned per unit of systematic risk (beta), measuring performance relative to market risk.

How is Ratio de Treynor used in finance?

In finance communication, this term appears in contexts such as: "El ratio de Treynor mide el rendimiento excedente por unidad de riesgo de mercado, siendo esencial para evaluar carteras diversificadas."

Why does Ratio de Treynor matter in finance?

Ratio de Treynor matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Ratio de Treynor?

Ratio de Treynor is mainly used by Financial Analysts, Bankers, and Traders.

What category does Ratio de Treynor belong to?

In this glossary, Ratio de Treynor is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A risk-adjusted return metric that calculates excess return earned per unit of systematic risk (beta), measuring performance relative to market risk.

Operational example

The Treynor Ratio is used to assess how much excess return a portfolio generates per unit of market risk, making it vital for evaluating diversified portfolios.

Localized term

Ratio de Treynor

Localized example

El ratio de Treynor mide el rendimiento excedente por unidad de riesgo de mercado, siendo esencial para evaluar carteras diversificadas.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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