Some of these trades occur because financial institutions, companies, or individuals have a business need to exchange one currency for another. For example, an American company may trade U.S. dollars for Japanese yen in order to pay for merchandise that has been ordered from Japan and is payable in yen. So, they can be less […]
Treynor Ratio How does it work with Examples and Excel Template?
Lo noted that the capital asset pricing model championed by economists is vital to the mutual fund industry. Aherns inspects a mutual fund’s Treynor formula to see if a portfolio’s performance justifies its risk. The expected or actual rate of return can be measured in any time frame, as long as the measurement is consistent. […]