Information ratio

Reading 58: The information ratio of a portfolio is the annualized residual return of the portfolio divided by the annualized residual risk.

Reading 59: Information ratio (IR) = IC × ; Breadth (BR) is the number of independent forecasts of exceptional return that the manager makes per year.

From reading 58, investment manager have thier unique IR. However, in reading 59, it seems investment manger can increase their IR via increasing BR…

Could you please advise why…Many thanks.

Regards,

Frank

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