Information ratio

CFA Level III Equities
#1

Sch book 3, Pg 145, LOS239

Dear all,

I am slightly confused on the ‘IR’

Does it pertain to a fund or to a manager’s performance.

The above LOS refers to a manager’s performance. But else in the curriculum this is referred to portfolio performance.

Does anyone have a view as to how to calculate IR for alpha beta separation approach-using IB- (with a manager for each strategy).

Subsequently to add/sum the IR for the managers so that the IR for the portfolio as a whole could be arrived.

Thank you

#2

calculate the weighted active return and weighted active risk and divide.

#3

cfastudent,

thank you.

Do you have any particular example in mind or can you please refer me to a website.

#4

Reading 27, example 14