Can someone tell me the following:
information ratios and capture ratios are relative ratios that are part of the performance appraisal.
So this statement is wrong because it should be part of performance measurement, but arent we calculating the information ratio and capture ratio during the performance appraisal??
No.
You’re using the values (which you calculated in performance measurement) in performance appraisal.
ok but why are capture ratios, information ratios,sortino ratio listed as appraisal measures under the performance appraisal section?
Because they’re appraisal measures; i.e., they’re used in performance appraisal.
But they’re calculated in performance measurement.
ok got it
thank you so much
My pleasure.