{
  "slug": "treynor-ratio",
  "name": "Treynor Ratio",
  "category": "Risk-Adjusted Performance",
  "description": "Excess return per unit of systematic (market) risk, β. Useful when only market risk is being compensated.",
  "formula": "Treynor = (R_p - R_f) / β",
  "formula_latex": "\\text{Treynor} = \\dfrac{R_p - R_f}{\\beta}",
  "parameters": [
    {
      "name": "Portfolio return",
      "symbol": "R_p",
      "type": "percent",
      "default": 0.12
    },
    {
      "name": "Risk-free rate",
      "symbol": "R_f",
      "type": "percent",
      "default": 0.043
    },
    {
      "name": "Beta",
      "symbol": "β",
      "type": "number",
      "default": 0.9,
      "min": 0.0001
    }
  ],
  "outputs": [
    {
      "name": "Treynor Ratio",
      "symbol": "Treynor",
      "type": "number"
    }
  ],
  "worked_example": {
    "inputs": {
      "R_p": 0.12,
      "R_f": 0.043,
      "beta": 0.9
    },
    "expected_outputs": {
      "treynor": 0.0856
    }
  },
  "related_terms": [
    "treynor-ratio",
    "beta",
    "capm"
  ]
}