12 pt] 20. Portfolio manager performance is often measured relative to a benchmark rather than to the risk- free rate. A manager that specializes in large-cap U.S. stocks might be measured against the S&P 500 index, and outperforming that index on a consistent basis would be noteworthy. One way to measure such performance is with a statistic called the information ratio (IR). In the numerator put the manager's average excess return (return versus the benchmark), and in the denominator put the standard deviation of excess returns. This denominator, also called tracking error, gives a sense of how consistent the manager's outperformance is, period by period. Suppose in a given year and based on monthly data, a portfolio manager achieves an information ratio of 0.60 -- a very good result. What is the approximate probability that achieving this ratio (or an even higher/better one) is simply a matter of luck (as opposed to skill)? (Use the normal probability distribution for approximation purposes.) Approximate probability of achieving IR 0.60 (if true IR = 0) is (decimal) 12 pt] 20. Portfolio manager performance is often measured relative to a benchmark rather than to the risk- free rate. A manager that specializes in large-cap U.S. stocks might be measured against the S&P 500 index, and outperforming that index on a consistent basis would be noteworthy. One way to measure such performance is with a statistic called the information ratio (IR). In the numerator put the manager's average excess return (return versus the benchmark), and in the denominator put the standard deviation of excess returns. This denominator, also called tracking error, gives a sense of how consistent the manager's outperformance is, period by period. Suppose in a given year and based on monthly data, a portfolio manager achieves an information ratio of 0.60 -- a very good result. What is the approximate probability that achieving this ratio (or an even higher/better one) is simply a matter of luck (as opposed to skill)? (Use the normal probability distribution for approximation purposes.) Approximate probability of achieving IR 0.60 (if true IR = 0) is (decimal)