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Use the fundamental identities to simplify the expression.
Treynor Measure
A performance metric for determining how well an investment compensates the investor for taking risk, comparing returns above the risk-free rate to the investment's market risk.
Standard Deviation
A statistical measure that represents the dispersion or variability of a data set, commonly used in finance to quantify the risk of investment returns.
Beta
A measure of a security's volatility compared to the market as a whole, indicative of its relative risk.
Serial Correlation
The relationship between sequential data points in a time series, indicating that a value in the series is statistically correlated with its predecessors.
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