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

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.


Information content effect

Information content effect

The rise in the stock price following a dividend signal, or publication of some other related news.


Information architecture

Information architecture

The flow of pages and data on a website. The intentional design, structure and organization of a website so as to provide information efficiently.


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.


London Market Information Link

London Market Information Link

The London Stock Exchange's main source of UK financial data for market professionals and information vendors.


Further Suggestions

Informational efficiency
insider information
Limit order information system
Information services
For your information (FYI)
Expected value of perfect information
Statement of Additional Information (SAI)
Incomplete information
Information asymmetry
price sensitive information
Insider information
Complete information
Fundamental Information
Informational efficiency
Nonpublic information
Technical Information
Intermarket Surveillance Information System (ISIS)
Information costs
Asymmetric information
Information Agent


 
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