A ratio which compares the value of alpha to residual standard deviation, and is designed to show how good fund managers are at picking investments. It compares the return on the investments chosen by fund managers to the risk associated with the investments chosen. A high appraisal ratio means that the managers did a good job at picking which investments to hold.
Related information about appraisal ratio:
- Appraisal Ratio Definition | Investopedia
A ratio used to measure the quality of a fund's investment picking ability. It compares the fund's alpha (or the adjusted return of the fund assuming the market ...
- Information ratio - Wikipedia, the free encyclopedia
It is also known as Appraisal ratio and is defined as expected active return divided by tracking error, where active return is the difference between the return of ...
- Appraisal Ratio - Hedge Fund Blogger.com
You find the Appraisal Ratio by taking the alpha of the hedge fund portfolio and dividing it by the non-systematic risk of the portfolio. The result is a ratio that ...
- What is appraisal ratio? definition and meaning
Definition of appraisal ratio: A ratio which compares the value of alpha to residual ... A high appraisal ratio means that the managers did a good job at picking ...
- Appraisal Ratio Definition, Example & Formula | InvestingAnswers
We explain the definition of Appraisal Ratio, provide a clear example of the formula, and explain why it is an important concept in business, finance & investing.
- What Is an Appraisal Ratio?
An appraisal ratio is a method of assessing an investment fund manager's performance. It does not simply measure how high a return he has achieved, but puts ...
- Appraisal Ratio Formula & Example
The appraisal ratio is a financial measure of how a fund manager is fairing against a relevant benchmark.
- Appraisal Ratio
Appraisal Ratio. The alpha of a portfolio divided by the non-systematic risk of the portfolio. The ratio measures the abnormal return per unit of risk that in principle ...