information ratio, ex ante information ratio, ex post information ratio

CFA Level II
#1

I get that ex ante informaiton determines a forecasted information ratio, and ex post looks at realized returns to determine an information ratio.

Then can someone tell me what just the plain information ratio represents? How do you connect the three?

#2

Plain information ratio is return/risk. Or (alpha)/w. It represent manager ability to achive better result per risk. So a manager with higher IR would achive better result.

#3

Thanks. I still don’t get it, because all of those IR ratios do that, but in their own fashion. I understand the post and the ante…just don’t know what the regular alpha/w represents in the context of the other two.

#4

We will know it in level 3 for sure :stuck_out_tongue:

#5

LOL.