excess return
Definition
Return rate on an investment relative to the return rate on risk free investment. If a return rate is 5 percent and the risk free rate is 1.5 percent, then the investment's excess return is 3.5 percent. Compare with abnormal return.
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excess return is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.
excess return appears in the definitions of the following terms: specific return, Sharpe ratio and abnormal return
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