The Treynor ratio evaluates mutual fund performance by measuring risk-adjusted returns against market risk, or beta. It's valuable for assessing funds in diversified portfolios and comparing risk management, but doesn’t account for unsystematic risk and assumes a well-diversified portfolio.
from Economic Times https://ift.tt/YwVAIgs
from Economic Times https://ift.tt/YwVAIgs
Explained: How to interpret Treynor Ratio in mutual funds
![Explained: How to interpret Treynor Ratio in mutual funds]()
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October 06, 2024
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