Roflnadal

markCFAIL Wrote:
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> I think this is the relatioship, please confirm:
>
> ACTIVE RETURN: highest for active, then enhanced
> index, then pure index (zero active return)
>
> INFORMATION RATIO: highest for enhanced indexing,
> then active, then passive.


Yes.

Active strategy will always produce the greatest active return because the manager doesn't care about the benchmark. Active strategies are based on market expectations.

NO EXCUSES