The Information Ratio Is Calculated as the Ratio Of

question 54

Multiple Choice

The information ratio is calculated as the ratio of:

• A) mean active return to tracking risk.
• B) alpha to beta.
• C) excess return to portfolio standard deviation.
• D) portfolio excess return to tracking risk.

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Definitions:

Co-Insurer

A scenario where multiple insurers share the risk of an insurance policy, each being responsible for a portion of any loss.

Life Insurance Policy

A contract with an insurance company that, in exchange for premium payments, provides a lump-sum payment to beneficiaries upon the insured person's death.

Drunken Rage

An extreme anger or aggressive behavior exhibited by an individual under the influence of alcohol, which can lead to unpredictable and potentially harmful actions.

Entire Amount

The entire amount refers to the full sum or total of something, without omitting any part or portion in calculations or distributions.