问一道题：NO.PZ201710100100000503

问题如下：

3. Based on data in Exhibit 2 and using the information ratio as the criterion for evaluating performance, which subportfolio had the best performance in the period 1996–2015?

选项：

The bond subportfolio.

The equities subportfolio.

The real estate subportfolio.

解释：

B is correct.

The information ratio for a portfolio can be expressed as follows:

$IR={(TC)}{(IC)}\sqrt{BR}$

The information ratios for the three subportfolios are calculated as follows:

Based on the information ratio, the equities subportfolio outperformed the real estate subportfolio. The information ratio for the equities subportfolio of 0.38 was higher than the information ratio for the real estate subportfolio of 0.35 and the bond subportfolio of 0.33

考点：The full fundamental law

根据$IR=TC\times IC\times\sqrt{BR}$，代入表格中的数据，求出三个subportfolio的information ratio分别为0.39，0.33，0.35，因此equities subportfolio的information ratio最大。