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Active Return |
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Active Return Return relative to a benchmark. If a portfolio's return is 5%, and the benchmark's return is 3%, then the portfolio's active return is 2%. Active Return The actual return on an investment relative to some benchmark. The active return can be either positive or negative; for example, if the actual return is 5% and the benchmark is 6%, the active return is -1%. More broadly, the active return may be the difference between an investment or portfolio and some index against which it is measured. If a portfolio outperforms the market, it may be said to have a positive active return. See also: Required rate of return. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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