Jack L. Treynor

Treynor Jack Lawrence ( born February 21, 1930 in Council Bluffs, Iowa) is an American manager. As an author of scientific papers he contributed to the development of portfolio theory and the Capital Asset Pricing Model.

Career, teaching and research

Treynor initially studied mathematics at Haverford College, which he left as a Bachelor of Science degree in the direction of Harvard Business School. There he graduated in 1955 with honors with a Master of Business Administration. Although he had dealt during his studies with the analysis of risks of corporate finance, he left the university area and went to management consultancy Arthur D. Little.

There Treynor wrote a working paper entitled " Market Value, Time, and Risk ." Although first published publicly until almost forty years late in 1999, he came over here with Franco Modigliani and William Sharpe in contact. There was a lively exchange between economists, with Treynor was even temporarily enrolled at the Massachusetts Institute of Technology. In addition to Sharpe, John Lintner and Jan Mossin he was in consequence one of the most important pioneers of the Capital Asset Pricing Model to the understanding of which he contributed to the development of later named after him Treynor ratio. It can be used the power of the investor relative to the overall market development describe, because with it the risk premium per unit of systematic risk incurred is measured.

While his theoretical work at Arthur D. Little by Fischer Black, of the mid-1960s hired at the company, was driven, Treynor left the company and worked subsequently for various investment banks and companies. While he thus tried the one hand, the practical application of his findings, he worked in parallel continues with Black and together they developed the early 1970s, the actuarial Treynor - Black model for portfolio selection. As early as 1969, he was also editor of the Financial Analysts Journal. In 1981, Treynor his own investment company.