easy · FRM Part 2 Risk & Investment Management
Formula-and-meaning check before application in Risk & Investment Management.
Within Risk & Investment Mgmt — Performance Measurement, which statement correctly describes Information ratio?
- active return divided by tracking error
- compound return that removes the effect of external cash-flow timing
- internal rate of return that reflects the timing and size of investor cash flows
- attribution from overweighting or underweighting market segments relative to a benchmark
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