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

Expected value of perfect information

Expected value of perfect information

The expected value if the future uncertain outcomes could be known minus the expected value with no additional information.


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.


Limit order information system

Limit order information system

The electronic system supplying information about securities traded on participating exchanges so that the best securities prices can be found.


Information content effect

Information content effect

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


Asymmetric information

Asymmetric information

Information that is known to some people but not to other people.


Further Suggestions

Asymmetric information
Information architecture
Informational efficiency
Complete information
Intermarket Surveillance Information System (ISIS)
Information Agent
Insider information
For your information (FYI)
Information asymmetry
Information costs
price sensitive information
Technical Information
Incomplete information
Information services
Informational efficiency
Statement of Additional Information (SAI)
Nonpublic information
London Market Information Link
insider information
Fundamental Information


 
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