Excess return: related pages
Abnormal return
The excess of actual return over the level of return that would be expected given the riskiness of a portfolio.
Absolute return
An absolute return is the actual amount of money made by an investment ; the actual gain as a percentage of the amount invested.
Accounting rate of return (ARR)
Average operating profit ÷ average book value of assets, as a percentage.
Expected return
The average of all possible returns an investment will produce, weighted by probability.
Real return
The return on an investment, less the reduction in its value as a result of inflation.
Relative returns
The return on an investment less the market return.
Risk premium
The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
CAGR (compound annual growth rate)
The average growth rate over a period of several years: the geometric average of annual growth rates.
Alpha (Jensen's alpha, portfolio alpha)
The alpha of a security or fund is its out-performance over the risk adjusted return, with risk measured by beta.
Copyright Graeme Pietersz © 2005-2019