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

Insider information

Insider information

Price-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).


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.


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.


Incomplete information

Incomplete information

See complete information.


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

Information asymmetry
price sensitive information
Information services
Asymmetric information
Technical Information
Intermarket Surveillance Information System (ISIS)
Insider information
Information Agent
Informational efficiency
Information content effect
Information costs
Informational efficiency
Information Coefficient (IC)
Nonpublic information
Statement of Additional Information (SAI)
Information architecture
For your information (FYI)
Complete information
Fundamental Information
Expected value of perfect information


 
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