This is a step-by-step tutorial for estimating the realized Treynor ratio in Excel. The Treynor ratio is a popular reward-to-risk ratio and is a useful risk-adjusted performance measure.
Visit the page below to download the Excel template used in this tutorial:
https://www.initialreturn.com/excel-templates/
We also have a detailed lesson that explains the Treynor ratio and its formula with examples. A handy online calculator is included as well:
https://www.initialreturn.com/treynor-ratio-formula-calculator/
You might find our tutorial on downloading data from Yahoo! Finance interesting as well:
https://youtu.be/ulYfFTBuEsQ
0:00 Intro
0:19 Step 1: Prepare the data.
1:27 Step 2: Compute “excess” returns.
2:35 Step 3: Average excess return.
4:30 Step 4: Beta.
5:53 Step 5: Obtain the Treynor ratio.
7:00 Visualizing the Treynor ratio.
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