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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 MatchesInformational efficiencyInformational efficiencyThe degree to which market prices correctly and quickly reflect information and thus the true value of an underlying asset. 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. Insider informationInsider informationMaterial 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 servicesInformation servicesOrganizations that furnish investment and other types of information, such as information that helps a firm monitor its cash position. 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). Further SuggestionsInformation costsNonpublic 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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