The Treynor ratio and the Sharpe ratio are financial metrics that use different approaches to evaluate the risk-adjusted ...

How the Treynor ratio works. The Treynor ratio uses a portfolio's "beta" as its risk. Beta measures the volatility of an investment relative to the stock market, generally the S&P 500 index, which ...

Even if you have taken on board the difference between relative and absolute risk, you are still left with the question as to what a “1-in-1,000 risk” actually means.

For a true relative risk of 1.20, the odds ratio based on an unweighted town mean was attenuated by 19% (OR=1.16). For true relative risks of 1.50 and 2.00, ...