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 Agent

Information Agent

Agent whose primary task is to disseminate and explain the details of capital transactions.


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.


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.


Intermarket Surveillance Information System (ISIS)

Intermarket Surveillance Information System (ISIS)

A database that distributes information from all the major stock exchanges in the United States.


Further Suggestions

Information services
Nonpublic information
Insider information
London Market Information Link
Informational efficiency
Information Coefficient (IC)
Asymmetric information
Complete information
Information content effect
Technical Information
Limit order information system
Incomplete information
Informational efficiency
Fundamental Information
price sensitive information
Information costs
For your information (FYI)
insider information
Information asymmetry
Information architecture


 
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