billycalc

Information Ratio (Portfolio return, Benchmark return)

Calculate Information Ratio instantly with the exact formula and a worked example.

Information Ratio

Portfolio return%
Benchmark return%
Tracking error%
IR
0.8
Calculate Information Ratio instantly with the exact formula and a worked example.
Active return
+4%
Rating
Very good

More about: Information Ratio (Portfolio return, Benchmark return)

What it calculates

The “Information Ratio (Portfolio return, Benchmark return)” calculator computes IR from 3 parameters: portfolio return (%), benchmark return (%), tracking error (%).

A core calculation for studying, engineering tasks, and checking solutions.

Example calculation

With parameters Portfolio return = 14 %, Benchmark return = 10 %, Tracking error = 5 % the result is 0.8.

How to use

  1. Enter portfolio return, benchmark return and tracking error — each field above is adjustable with a slider.
  2. IR is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

Related calculators

FAQ

How is Information Ratio (Portfolio return, Benchmark return) calculated?
The Information Ratio (Portfolio return, Benchmark return) calculator computes IR from portfolio return, benchmark return, tracking error. Enter your values above and the exact formula is applied instantly; a worked example with real numbers is shown below.
Is the Information Ratio (Portfolio return, Benchmark return) calculator free?
Yes. It is completely free, needs no signup, runs entirely in your browser, and sends no data to any server.

More calculators in this category

Explore related free tools

Partial DerivativeL'Hôpital's RuleFirst-Order Differential EquationSecond-Order Linear ODEPermutations (nPr)Combinations (nCr)Combinations with RepetitionFactorial (n!)Multinomial CoefficientCatalan NumberBell NumberEuler's Totient φ(n)