Understanding the Treynor Ratio

In assessing the performance of a mutual fund over the past year, an analyst has calculated various risk-adjusted performance measures. The fund's excess return over the risk-free rate was 6% with a beta of 1.2. The analyst is particularly interested in understanding how effectively this fund is generating returns per unit of risk taken relative to the market. The analyst remembers that the Treynor Ratio is particularly useful in this context.

Which of the following statements accurately describes the Treynor Ratio?