To calculate Treynor's reward-to-volatility ratio, the analyst does not need the
A) average riskfree yield.
B) beta for the portfolio.
C) average portfolio excess return.
D) market return standard deviations.

Question

Quizplus · Accepted Answer

Treynor's reward-to-volatility ratio is calculated using the portfolio's excess return over the risk-free rate divided by the portfolio's beta. It does not require the market return standard deviations, which are used in calculating the Sharpe ratio, not the Treynor ratio.

To Calculate Treynor's Reward-To-Volatility Ratio, the Analyst Does Not Need