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Instructions: Identify the following. Be as specific as possible, and include names, dates, and relevant facts as appropriate. Be sure to explain the significance of the person or term.
Carolina, Anthony Ashley Cooper
Information Ratio
A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.
Risk-Free Return
The theoretical return on an investment with no risk of financial loss, traditionally associated with government bonds or bills.
Information Ratio
A ratio used to measure the return of an investment relative to the risk taken, comparing the asset's returns beyond the benchmark to the volatility of those returns.
Risk-Free Return
The expected return from an investment that carries no risk of losing money, usually linked to government securities.
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