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Refining Alphas - Scaling and Trimming Alpas - AIM 53.2

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Hi David.

Could you please explain the process of Scaling and Trimming alphas
(in the Topic - Grinold & Kahn. Chapter 16 - Refining Alphas - Scaling and Trimming Alpas - AIM 53.2)

1) how do i interpret this formula for scaling :

Alpha = (Volatility) x (Information coefficient) x (Score)

Firstly, what is meant by Score, Secondly how does the formula actually work to rescale alpha?

2) how does trimming work to refine alpha

Also pls comment on the testability on this part of the curriculum.

Thank you
 
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