Skip to content
Warren AI
Sign in
Personal Financial Planning
16. CHAPTER 12-C: MUTUAL FUNDS/Performance Measures
16. CHAPTER 12-C: MUTUAL FUNDS Illustration
Syllabus Slides

Performance Measures

01.Core Concepts

• Information ratio • Ratio of expected return to risk as measured by standard deviation that seeks to quantify the amount of incremental risk undertaken by a portfolio manager to achieve an excess return • Coefficient of variation • Relative measure of total risk per unit of expected return • Used to compare investments with varying rates of return and standard deviations