# Suppose that a QEPM department hires a new quantitative equity portfolio manager to manage one of its

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## Question:

Suppose that a QEPM department hires a new quantitative equity portfolio manager to manage one of its portfolios. Suppose that the portfolio managers benchmark is the S&P 500, with a Sharpe ratio of 0.25. After 1 year, the manager has an information ratio (IR) of 0.5. Should the head of the department award him a bonus based on this IR?

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## Business Law Text And Exercises

ISBN: 9780357717417

10th Edition

Authors: Roger LeRoy Miller, William E. Hollowell