Information Ratio and its Relative Strength for Portfolio Managers

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.