Microsoft Treynor Ratio

Microsoft Corporation has current Treynor Ratio of 0.739. The Treynor is reward-to-volatility ratio that expresses the excess return to the beta of the equity or portfolio. It is similar to the Sharpe ratio, but instead of using volatility in the denominator, it uses the beta of equity or portfolio. Therefore the Treynor Ratio is calculated as [(Portfolio return - Risk free return)/Beta].
Treynor Ratio 
ER[a] - RFR 
ER[a] =   Expected return on investing in Microsoft
BETA =   Beta coefficient between Microsoft and the market
RFR =   Risk Free Rate of return. Typically T-Bill Rate

Treynor Ratio Comparison

Microsoft Corporation is regarded fifth in treynor ratio category among related companies. It is rated below average in maximum drawdown category among related companies reporting about  5.72  of Maximum Drawdown per Treynor Ratio. The ratio of Maximum Drawdown to Treynor Ratio for Microsoft Corporation is roughly  5.72 
This ratio was developed by Jack Treynor to measure how well an investment has compensated its investors given its level of risk. The Treynor ratio relies on beta, which measures an investment sensitivity to market movements, to gauge risk. The premise underlying the Treynor ratio is that systematic risk--the kind of risk that is inherent to the entire market (represented by beta)--should be penalized because it cannot be diversified away.
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Microsoft Corporationration a technology company develops licenses and supports software products services and devices worldwide. more
NameMicrosoft Corporation
InstrumentUSA Stock
RegionNorth America
CIK Number0000789019
Analyst Consensus
Piotroski F Score
Macroaxis Advice
Bond Rating
CurrencyUSD - US Dollar