Information Ratio (IR) active, return, highest

brain_wash_your

According text, the ranking of IRs is : Semi-active > Active > Passive. But both active return & risk are near 0. Then IR = 0/0, how can we define IR = 0/0 ? it is the lowest or highest ?

liangfeng

0/0 is not the same as near zero/near zero.

nannan66

In the mock exam, Goldsboro's case, Exhibit 3,

the IR for GB-STI-3 is undefined: 0/0.