4] Which combination of equity investment philosophies, their Information Ratios, and the drivers of the Information Ratios is most likely correct? [note: the Information Ratio is the amount of excess risk-based return or alpha earned per unit of standard deviation of alpha]

1. Active - Lowest Information Ratio because alpha or out-performance is so hard to achieve and sustain while investment costs can be a large drag on returns, Passive - the Information Ratio is undefined since alpha by definition is zero, and Semi-Active - Highest Information Ratio because adding alpha is low cost and fairly reliable due to the simplicity and mostly mechanical nature of the alpha strategies.
2. Active-Second-Highest Information Ratio because alpha or out-performance is achievable and usually out-weighs investment costs, Passive - the Highest Information Ratio since the cost of investing is or can be near zero, and Semi-Active - Lowest Information Ratio because alpha, if achieved at all, is likely to be very low.
3. Active - Highest Information Ratio because alpha or out-performance can be the highest, Passive - Second Highest Information Ratio because investment costs are so low, and Semi-Active - Lowest Information Ratio because the cost of adding alpha is high due to the complexity of the Semi-Active alpha strategies.