Information Ratio

FrankCFA

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Anyone thinks if the name called “Active management quality/skilll index” or something like that will be easier to understand?
Information ratio is really a weird noun….
 
active risk / active return
excess return / dev in excess return
 
** at the company office **
Chief Investment Officer : How is the Active Management Quality / Skill Index this month?
Portfolio Manager : Well, the Active Management Quality / Skill Index has risen 2 percent points…
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Some things are better named short. Get used to it :)
 
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