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Treynor Ratio Calculator.

Calculate excess portfolio return per unit of beta.

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Treynor ratio: 6.6667% %

Treynor ratio

6.6667%%

FAQs

How does the treynor ratio calculator work?

Enter the requested values to receive a deterministic result. No live market, tax, or jurisdiction data is inferred.

Cite this calculator

Canonical URL: https://mathify.one/es/finance/treynor-ratio

Cite as: Mathify. (2026). Calculadora: Treynor Ratio. https://mathify.one/es/finance/treynor-ratio

Use Cases

Evaluate Portfolio Performance

Compare the risk-adjusted returns of different portfolios or funds, especially those with varying levels of market risk, to identify which provides better compensation for systematic risk.

Example: Compare two mutual funds: Fund A has a Treynor Ratio of 0.08, Fund B has 0.05; Fund A is more efficient.

Assess Individual Stock Risk-Return

Use the Treynor Ratio to evaluate a single stock's performance relative to its market risk, helping you decide if the expected return justifies the systematic risk.

Example: A stock with a beta of 2 and a return of 15% when risk-free is 3% has a Treynor Ratio of 6%.

Frequently Asked Questions

What is the Treynor Ratio?
The Treynor Ratio measures a portfolio's excess return (above the risk-free rate) per unit of systematic risk, as measured by beta. It helps investors evaluate how well a portfolio compensates for market risk.
How is the Treynor Ratio calculated?
The formula is (Portfolio Return - Risk-Free Rate) / Beta. For example, if a portfolio returns 12%, the risk-free rate is 2%, and beta is 1.5, the Treynor Ratio is (0.12 - 0.02) / 1.5 = 0.0667, or 6.67%.
What does a higher Treynor Ratio indicate?
A higher Treynor Ratio indicates better risk-adjusted performance relative to systematic risk. It means the portfolio is generating more excess return per unit of market risk, which is generally preferred by investors.

Tips & Common Mistakes

Tips

  • Ensure you use the same time period for portfolio return, risk-free rate, and beta to get an accurate ratio.
  • Use a consistent risk-free rate, such as the yield on a 10-year government bond, for meaningful comparisons.
  • Remember that beta measures systematic risk, not total risk; the Treynor Ratio ignores unsystematic risk.
  • Compare Treynor Ratios only among portfolios with similar investment objectives and benchmarks.

Common Mistakes to Avoid

  • Using the portfolio's total risk (standard deviation) instead of beta, which would be the Sharpe Ratio, not Treynor.
  • Forgetting to subtract the risk-free rate from the portfolio return before dividing by beta.
  • Using a beta that is not aligned with the portfolio's actual market exposure, leading to misleading results.

Last updated: August 13, 2026