Information ratio: related pages

The alpha of a security or fund is its out-performance over the risk adjusted return, with risk measured by beta.

Beta is a measure of the correlation between the value of a security and the market. Beta is used to calculate discount rates for CAPM.

A collective investment vehicle that is designed to replicate the performance of a particular index.

The excess of actual return over the level of return that would be expected given the riskiness of a portfolio.

Portable alpha is a process that allwos the addition of one portfolio’s alpha to another, without affecting the second portfolio’s beta.

A combination of index tracking with active investment.