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Information Ratio |
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Information RatioThe 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 MatchesAsymmetric informationAsymmetric informationInformation that is known to some people but not to other people. Information Coefficient (IC)Information Coefficient (IC)The correlation between predicted and actual stock returns, sometimes used to measure the contribution of a financial analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship. Nonpublic informationNonpublic informationInformation about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. Price sensitive informationPrice sensitive informationInformation which, if made public, is likely to have a significant effect on the price of a company's securities. Such information must, in connection with a listed company, be reported to RNS, so that it can be released to the market in a fashion which is fair to all investors.Any person who uses price sensitive information to make a profit either for themselves or a third party in the shares of a company are in breach of insider trading laws or the Market Abuse Regime. Asymmetric informationAsymmetric informationThe failure of two parties to a transaction to have the same relevant information. Examples are buyers who know less about product quality than sellers, and lenders who know less about likely default than borrowers. Both are common in international markets. Further SuggestionsInformation AgentInformation content effect Limit order information system Intermarket Surveillance Information System (ISIS) Information asymmetry Technical Information For your information (FYI) insider information Fundamental Information Informational efficiency London Market Information Link Expected value of perfect information Information services Statement of Additional Information (SAI) Insider information Incomplete information Complete information Information costs Informational efficiency Information architecture |
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