Information Ratio and its Relative Strength for Portfolio Managers
![TipMyPip TipMyPip](https://c.mql5.com/avatar/avatar_na2.png)
The risk and return are the two most significant quantities investigated within the investment performance.
We expect the return to be highest at the minimum risk. In practice, a set of various combinations is always achieved depending on a number of factors related to the investment strategies and market behaviours,
Inspire yourself with some Computational Mathematics... -> Sources.
(Page 66) Gambler’s ruin In Gambler’s ruin, a gambler starts with $x, where 0 ≤ x ≤ a ∈ N and in each play wins a dollar (with probability p ∈ (0, 1)) and loses a dollar (with probability q = 1 − p). When the gambler reaches either 0 or a, the game stops. The transition probabilities are similar to those of a random walk, but differ from them at the boundaries 0 and a. The state space is finite S = {0, 1, . . . , a} and the matrix P is, therefore, given by...
While you can share with me the Linear Problems defined in your on going differences with Inverse functions and I will share with you some real life examples.
Thank you.