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Information Ratio What is the Information Ratio
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Video Source: www.youtube.com/watch?v=yIDvC154We0
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. • Remember to download the Finlingo app on the App Store here: https://apps.apple.com/ph/app/cfa-tot... • Alternatively, download it on the Google Play Store here: https://play.google.com/store/apps/de... • Once you practice enough, you’ll be a master!
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