medium · FRM Part 2 Risk & Investment Management
A fund manager calculates the Information Ratio (IR) for a strategy. If the Information Coefficient (IC) is 0.05 and the strategy involves 100 independent investment decisions per year, calculate the IR assuming a Transfer Coefficient (TC) of 0.80.
- 0.50
- 0.40
- 4.00
- 0.04
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