Excess Return to Market Beta Ratio
Compare extra return above risk-free return for each unit of market beta.
Your numbers
Treynor ratio using decimal return
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
Compare scenarios
You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
Use T = (R−F)/β. R and F na period return and risk-free return for the same period, as fractions; β na the positive market beta wey you enter. Result use decimal return per unit of beta.
Compare extra return above risk-free return for each unit of market beta.
Example wey show the calculation
- Return for the period (%)
- 10
- Risk-free return for the same period (%)
- 2
- Market beta wey positive
- 1
- Treynor ratio using decimal return
- 0.08
Where e fit work and limits
Estimate for learning with your assumptions; no live rates, tax rules or investment recommendations. Returns fit dey negative and no get guarantee.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 22ad5309e420 · Example don get check: