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Definition | : | Information Ratio |
Category | : | Business » Finance |
Country/ Region |
: | Worldwide
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Popularity | : |
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Type | : |
Initialism
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Information Ratio (IR) is a measure used in finance and investment to evaluate the risk-adjusted performance of a portfolio or a specific investment manager.
IR assesses the performance of the portfolio or strategy relative to a chosen benchmark index while considering the level of risk taken to achieve that performance.
A higher IR indicates that the portfolio is performing better relative to the benchmark, after accounting for the level of risk taken. In other words, a higher IR suggests that the portfolio or investment manager has generated a higher excess return compared to the benchmark for the level of risk involved.
The full form of IR is Information Ratio
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Infrared | Iridium | Investor Relations | Information Retrieval | International Relations | Immediate-Release | Insulin Resistance | Ionizing Radiation | Industrial Relations | Incidence Rate | Interest Rate | Insulin Receptor | Interventional Radiology | Institutional Repository | Internal Router | Integrated Resort | Instruction Register | Intermediate Representation | Impulse Response | Insulation Resistance | Incidence Rate | Inverted Repeat | Institutional Research | Injured Reserve | Internal Revenue | Incident Report | Information Ratio | Information Revolution | Image Retention