The information ratio (IR) has been described as a benefit-cost ratio. Explain how the IR measures portfolio

Question:

The information ratio (IR) has been described as a benefit-cost ratio. Explain how the IR measures performance and whether this analogy is appropriate.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...