Information Ratio

 

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Information Ratio

The ratio of annualized expected residual return to residual risk. A central measurement for active management, value added is proportional to the square of the information ratio.



Information Ratio

Similar Matches

Informational efficiency

Informational efficiency

The degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset.


Expected value of perfect information

Expected value of perfect information

The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.


Insider information

Insider information

Material information about a company that has not yet been made public. It is illegal for holders of this information to make trades based on it, however received.


Information services

Information services

Organizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position.


Insider information

Insider information

Price-sensitive information about a company that has not yet been made public.People who use the information either to make a profit for themselves or for someone else are committing a criminal offence (insider dealing).The inside dealer does not have to work for the company for his dealing to be an offence. So a stockbroker, or merchant banker, who knows about an impending takeover deal who buys shares in the target company with the intention of making a profit, is guilty. If he gets a friend to buy the shares, he is still guilty. In theory, the net is cast quite wide. In practice, insider dealing prosecutions are rare, and successful ones rarer still because the allegations are so hard to prove.Note the difference between insider dealing (an offence) and directors dealings (not an offence).


Further Suggestions

Information costs
Nonpublic information
For your information (FYI)
Informational efficiency
Information content effect
London Market Information Link
Information Coefficient (IC)
Incomplete information
Limit order information system
Asymmetric information
price sensitive information
Information Agent
Information architecture
Information asymmetry
Asymmetric information
Complete information
Intermarket Surveillance Information System (ISIS)
Technical Information
Fundamental Information
Statement of Additional Information (SAI)


 
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