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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 MatchesFundamental InformationFundamental InformationInformation relating to the economic state of a company or economy. In market analysis, fundamental information is related to the earnings prospects of the firm only. 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. Statement of Additional Information (SAI)Statement of Additional Information (SAI)A document provided as a supplement to a mutual fund prospectus. It provides more detailed information about fund policies, operations, and risks. Also known as a Part B prospectus. Insider informationInsider informationPrice-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). Expected value of perfect informationExpected value of perfect informationThe expected value if the future uncertain outcomes could be known minus the expected value with no additional information. Further SuggestionsLimit order information systemIntermarket Surveillance Information System (ISIS) Asymmetric information price sensitive information Informational efficiency Information asymmetry Technical Information Information architecture Insider information Information services Information Agent Information costs For your information (FYI) Informational efficiency London Market Information Link Asymmetric information Incomplete information Complete information Nonpublic information Information content effect |
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