Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Information Ratio

Information Ratio Definition

Information Ratio (IR) is the ratio of expected return to risk. It is computed as a ratio of the expected return of an asset against a tracking error. The return is expressed as the return of the asset minus the return of a benchmark index, and tracking error is the standard deviation. This method is used to indicate an asset manager's performance against a benchmark.





Submit a Definition



Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z