Скачать или смотреть Information Ratio: What is the Information Ratio?

In this video we explain the rationale behind the Information Ratio. We also explain the terms behind it, such as 'Active Return' and 'Tracking Error'.

Once we've explained the rationale and the jargon, we cover how to calculate a tracking error with an Excel model.

We then cover the Information Ratio equation and work through an example towards a solution.

Once we've done all this, we run through a CFA-style exam question to show you how to quickly calculate an Information Ratio.

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Once you practice enough, you’ll be a master!