I know I’ve seen them but simply can’t find them. What page (CFAI/Schweser) are they with?
Book 3 page 147…was looking at that stuff yesterday
super! thanks. oh that’s for schweser 
(actually I sent a suggestion to schweser about having an online search engine to search the whole study notes content — that returns little of the content, but the page numbers. This is where I should find this useful!)
what the heck is ib ic
IR=IC * sqr (IB)
turkish_dude Wrote: ------------------------------------------------------- > what the heck is ib ic IR = IC x sqrt (IB)
ic = info coeff. measures depth of knowledge by p/f mgr ib = info breadth. no. of independent decision taken by p/f mgr. i have no idea why this formulae is valid, but just got to memorize as the law of active mgmt!!! - BN
the worst fundamental law ever
the underlying principle makes sense – you should get points for both depth and breadth as an active manager. the formula is complete rubbish though – way to just make up some random crap, CFAI.
Is this IR supposed to return the same result as the IR that =active return / tracking error. This has been annoying me since the start of studying and saw the post. Was wondering if anybody knew this?
sticky Wrote: ------------------------------------------------------- > super! thanks. oh that’s for schweser > > (actually I sent a suggestion to schweser about > having an online search engine to search the whole > study notes content — that returns little of the > content, but the page numbers. This is where I > should find this useful!) They should just cross reference things better from the beginning
wjj yes, it’s the same, there are two ways of calculating the same IR.