How does the Security Market Line and Treynor Ratio Calculator work?
Free Security Market Line and Treynor Ratio Calculator - Solves for any of the 4 items in the Security Market Line equation, Risk free rate, market return, Β, and expected return as well as calculate the Treynor Ratio.
This calculator has 4 inputs.
This calculator has 4 inputs.
What 2 formulas are used for the Security Market Line and Treynor Ratio Calculator?
Expected Return = Rf + Β(Rm - Rf)
(Expected Return - Rf)/ Β
(Expected Return - Rf)/ Β
What 6 concepts are covered in the Security Market Line and Treynor Ratio Calculator?
- expected return
- amount of profit or loss an investor anticipates on an investment
- market return
- risk free rate
- the rate of return offered by an investment that carries zero risk
- security market line
- is the representation of the capital asset pricing model. It displays the expected rate of return of an individual security as a function of systematic, non-diversifiable risk.
Expected Return = Rf + Β(Rm - Rf) - security market line and treynor ratio
- treynor ratio
- a measurement of the returns earned in excess of that which could have been earned on an investment that has no diversifiable risk
(Expected Return - Rf)/ Β
Security Market Line and Treynor Ratio Calculator Video
