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

Asymmetric information

Asymmetric information

Information 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 information

Nonpublic information

Information 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 information

Price sensitive information

Information 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 information

Asymmetric information

The 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 Suggestions

Information Agent
Information 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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