Search results
Nov 7, 2023 · What Is the Information Ratio (IR)? The information ratio (IR) is a measurement of portfolio returns beyond the returns of a benchmark, usually an index, compared to the volatility of those...
What is the Information Ratio? The information ratio measures the risk-adjusted returns of a financial asset or portfolio relative to a certain benchmark. This ratio aims to show excess returns relative to the benchmark, as well as the consistency in generating the excess returns.
The information ratio is simply the ratio of the active return of the portfolio divided by the tracking error of its return, with both components measured relative to the performance of the agreed-on benchmark. It is often used to gauge the skill of managers of mutual funds, hedge funds, etc.
Apr 7, 2024 · The Information Ratio (IR) is a performance metric that assesses a portfolio’s risk-adjusted returns compared to its benchmark. A higher IR indicates superior risk-adjusted performance.
Apr 24, 2024 · What Is An Information Ratio? The information ratio (IR) measures an investment manager’s skill in generating returns above a benchmark or an index while considering the volatility of the returns. It compares the return on investment or portfolio to the returns of a benchmark or an index.
Feb 20, 2024 · The information ratio (IR) measures the risk-adjusted returns on a portfolio in relation to a specified benchmark, which is normally an index representing the market (or sector).
Apr 24, 2024 · The information ratio is a measure of risk-adjusted performance that evaluates the ability of an investment manager to generate excess returns relative to a benchmark index.
Jun 27, 2023 · The Information Ratio (IR) is a crucial performance measurement tool used by investors and portfolio managers to evaluate the risk-adjusted returns of an actively managed investment portfolio.
Aug 29, 2023 · Information ratio measures the consistency of a fund or other investment's outperformance compared with a benchmark. It's risk adjusted and is a version of the more-common Sharpe Ratio.
Mar 22, 2019 · Information ratio measures success of an active investment management strategy/fund by comparing the excess returns earned by the investment portfolio to the volatility of those excess returns.
