Appraisal ratio

(redirected from Appraisal Ratios)

Appraisal ratio

The signal-to-noise ratio of an analyst's forecasts. The ratio of alpha to residual standard deviation.

Appraisal Ratio

A measure of a fund or portfolio's performance calculated by taking its alpha (a measure of the fund's return, assuming the market return is zero) and dividing by its unsystemic risk or standard deviation. Generally speaking, money managers use the appraisal ratio to measure the fund's performance relative to some benchmark. They may change the composition of funds and portfolios with suboptimal appraisal ratios.

References in periodicals archive ?

The comparisons, together with the investor appraisal ratios (price/earnings, price/book value, and dividend yield) of the comparable companies' common shares, provide the basis for determing the hypothetical freely traded value of the company's stock.

Valuing closely held stock

They employ two performance measures: the alpha and the appraisal ratio, with the latter measure being leverage-invariant.

2: hedge fund performance

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