Measurement of The Performance of Stocks of Retail Trade Companies Traded on Borsa İstanbul With Treynor Ratio

Abstract

Equity investment in developing countries is an important alternative to generating returns above risk-free returns. Investors who take risks by investing in stocks, expect returns above risk-free returns. Accordingly, the preference of the equity to be invested is extremely important. The Treynor performance measurement method, which takes into consideration the stock risk, risk-free return and average return of the stock, is an important method that can be used in this field. In our study, the performance of stocks of retail trade companies traded on Borsa Istanbul was measured according to Treynor ratios calculated over monthly returns of the past 5 years. The results of the measurements were compared with the results of September and October 2019. Only four stocks have positive Treynor ratios, yield higher than risk-free returns, others have negative Treynor ratios, yield less risk-free returns. Study shows that, stocks which have positive Treynor ratio generated higher return in September and October 2019 higher than other stocks.