AppliedNumeric answer
A signal’s daily IC averages with a standard deviation of across days. What is the -statistic of the mean IC, to two decimals?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More alpha and signal research questions
- Skill, breadth and the information ratio, part 1 of 3Foundation
- A signal has an information coefficient of 0.05 and you make 400 independent bets a year.Applied
- Your information coefficient is fixed and you want to double your information ratio.Applied
- A colleague reports a daily information coefficient of 0.35 on a liquid equity universe.Applied
- A signal has IC 0.05 and breadth of 400 independent bets a year, but portfolio…Applied
- Grinold’s rule sets expected residual return to IC × σ × z.Applied