Anyone thinks if the name called “Active management quality/skilll index” or something like that will be easier to understand?
Information ratio is really a weird noun…
active risk / active return
excess return / dev in excess return
portfolio alpha / unsystematic risk of the portfolio
** at the company office **
Chief Investment Officer : How is the Active Management Quality / Skill Index this month?
Portfolio Manager : Well, the Active Management Quality / Skill Index has risen 2 percent points…
Some things are better named short. Get used to it 