Definitions for "information ratio"
In investing terminology, the ratio of expected return to risk, as measured...
A ratio that measures the added return per unit of added risk.
Information Ratio is excess return relative to a benchmark divided by active risk (also known as, excess risk relative to the benchmark). Information ratio is a good measure of manager effectiveness because it incorporates the level of risk a manager takes to obtain a given excess return. For example, in a situation where two managers had identical excess returns, an investor would prefer the manager that took less risk to accomplish that level of returns and that manager would have a higher information ratio.
Keywords:  efficiency, services
Information services Informational efficiency