Treynor Ratio vs. Sharpe Ratio: A Complete Guide

By Yahoo! Finance | Oct 25, 2024 at 07:30 PM EST

The Treynor ratio and the Sharpe ratio are financial metrics that evaluate risk-adjusted returns. The Treynor ratio uses beta to measure systematic risk, while the Sharpe ratio considers standard deviation to account for unsystematic risk. Both ratios help assess investment performance beyond absolute returns.

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