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Be sure to check out the hobbyist sections of our site. We're in the process of rolling out sections on photography and everyday gadgets. We don't focus on the cutting edge, new technologies -- we're focusing on how to use new technologies in everyday life.
Gadgets
every day uses for new and old technologies.
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The Treynor Performance Index
The Treynor Index is a measure with which you may measure the performance of your portfolio over a given period of time. The important aspect of the Treynor Index is that this performance indicator takes into consideration the risk of the portfolio.
In order to use the Treynor Index, you must know three things; the portfolio return, the risk-free rate of return, and the beta of the portfolio. For the risk-free rate of return, you may use the average return (over the period of time) of some government bond or note. The beta of the portfolio is a measure of the systematic risk of the portfolio. Using the beta, rather than the standard deveiation (as in the Sharpe Index), you are assuming that the portfolio is a well diversified portfolio. If you are looking at the return of a mutual fund, this figure is typically available from the fund company itself (this and other measures are also available from the American Association of Individual Investors' Guide to Mutual Funds).
For those of you who want to know the formula for the index;
Treynor = (Portfolio Return - Risk-Free Return) / Beta
Let's use the same example information. A portfolio manager achieved a return of 15.0%, his portfolio had beta measurement of 1.1 and the market achieved a return of 14.6% vs. a risk free rate of return of 7%. To calculate the Jensen Index:
index = (.15 - .07) / 1.1 = 0.0727
To compare, another portfolio manager achieved a return of 13.5% with a beta of .81. The Treynor index for this porfolio manager is:
index = (.135 - .07) / 0.81 = 0.0802
This means that the 2nd portfolio manager out performed the first portfolio manager on a risk-adjusted basis.
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If you're looking for information on the the FinPlan Divorce Planner (from the other FinPlan company), please continue on to http://www.divorceplanner.com.
Note - FinPlan.com does not offer any information regarding this program nor does it have any relationship with the company offering the software. This link is provided as a service only.
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FinPlan.com offers several online tools and calculators as well as some software programs from FinPlan, Inc. FinPlan started developing software in the 1980s developing 10 programs covering several personal finance topics.
Family Retirement Planner
The FinPlan Family Retirement Planner provides an excellent high-level retirement planning model to help you determine your retirement planning needs which will allow you to develop a strategy to get there.
Financial Toolkit
The FinPlan Financial Toolkit provides a variety of financial tools designed to help you answer many questions on personal finance.
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