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Joe has been managing a portfolio over the past year. Performance analysis shows shows that he has realized an information ratio of 1 and a
Joe has been managing a portfolio over the past year. Performance analysis shows shows that he has realized an information ratio of 1 and a t statistic over this period. He argues that information ratios are what matter for value added, and so who cares about t statistics? Is he correct? What can you say about Joes performance?
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