 # Security Market Line and Treynor Ratio Calculator

## Enter 3 of the 4 below

%<-- Risk Free
<-- Β
%<-- Mkt Ret.
%<-- Exp. Ret.

### How does the Security Market Line and Treynor Ratio Calculator work?

Free Security Market Line and Treynor Ratio Calculator - Solves for any of the 4 items in the Security Market Line equation, Risk free rate, market return, Β, and expected return as well as calculate the Treynor Ratio.
This calculator has 4 inputs.

### What 2 formulas are used for the Security Market Line and Treynor Ratio Calculator?

Expected Return = Rf + Β(Rm - Rf)
(Expected Return - Rf)/ Β

For more math formulas, check out our Formula Dossier

### What 6 concepts are covered in the Security Market Line and Treynor Ratio Calculator?

expected return
amount of profit or loss an investor anticipates on an investment
market return
risk free rate
the rate of return offered by an investment that carries zero risk
security market line
is the representation of the capital asset pricing model. It displays the expected rate of return of an individual security as a function of systematic, non-diversifiable risk.
Expected Return = Rf + Β(Rm - Rf)
security market line and treynor ratio
treynor ratio
a measurement of the returns earned in excess of that which could have been earned on an investment that has no diversifiable risk
(Expected Return - Rf)/ Β