Excess Return

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Excess Return

A return that is larger than some benchmark, especially the risk-free return. A portfolio, for example, may have an excess return above the index on which it is based. This occurs when the portfolio manager makes certain investment decisions that pay off for the investor. It is important to note that receiving an excess return almost always requires one to take on more risk.

excess return

The return on an asset or a portfolio in excess of the risk-free return. If short-term corporate debt provides a return of 4 ¹/₂ % while U.S. Treasury bills are yielding 3 ¹/₂ %, excess return on the corporate debt is 1%. Excess return is usually correlated with the riskiness of an investment.

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Abnormal Returns Alpha Alpha Equation Beta Beta Equation Equity Risk Premium Event Anomalies Excess Return on the Market Portfolio Excess Returns Intellidex January Barometer Portfolio Beta Residual Return Retorno superior al mercado Reward-to-Volatility Ratio Risk-Free Return Security Characteristic Line Sharpe Ratio Specific Return			The excess return of each index is driven by the net present value of each underlying swap and this is marked-to-market using transparent and publicly available swap rate data. BarCap sets up Emerging Markets Asia Swap Index Family by CPI Financial i,t] is the excess return of fund i in month t, [RMRF. On the use of multifactor models to evaluate mutual fund performance by Huij, Joop; Verbeek, Marno / Financial Management Currency excess returns are highly predictable and strongly counter-cyclical. International Finance and Macroeconomics by NBER Reporter			examination of title Examined Business Examiner Exante Average Rate of Return Excedente de reservas Excedente del consumidor Excedente do consumidor Except for Opinion exception Exceptional Item Exceptional Return Exces de la demande Exceso de demanda Excess accumulation Excess Contribution Excess Deferral Excess Demand Excess Interest Excess Kurtosis excess land Excess Loan Excess Margin Excess Profits Tax excess rent Excess Reserves Excess Return Excess Return on the Market Portfolio Excess Returns Excess Social Security Tax Withheld Excess Supply Excess-Accumulation Penalty Excess-Currency Country Excessive Insurance Excessive Purchases Excessive Trading exchange Exchange Acquisition Exchange Against Actual Exchange Controls Exchange Distribution Exchange Fund Exchange Member Exchange Members Exchange of Assets Exchange of Futures for Cash Exchange of Stock Exchange Offer Exchange Privilege Exchange Rate Exchange Rate Bands Exchange Rate Mechanism			Excess profit Excess profit Excess profit tax Excess profit tax Excess profits Excess profits Excess profits Excess profits Excess Profits Levy Excess profits tax Excess profits tax Excess profits tax Excess Profits Tax of 1950 Excess Profits Tax of 1950 Excess Profits Taxes Excess Profits Taxes excess property Excess Property Laydown Yard/Scrap Metal Laydown Yard Excess Property Unit Excess Rainfall Hyetograph excess reactivity Excess Reduction Fee Excess Regulation Index Excess Relative Risk at 1 Sievert excess rent Excess Report Excess Reporting & Uniform Redistribution System Excess Reporting System Excess reserve Excess reserves Excess Return Excess return on the market portfolio Excess returns Excess Share Insurance Excess Social Security Tax Withheld Excess Steam Demand Event Excess Steam Dump Event excess supply excess supply Excess urine production Excess urine production Excess urine production Excess Water Storage Capacity Excess Weight Loss Excess Winter Death Index Excess, Surplus Sales, And Shipping Excess-Accumulation Penalties Excess-Accumulation Penalty Excess-Currency Countries Excess-Currency Country excess-fifty code Excess-Profits Tax Excess-Profits Tax excess-three code excessed excessed excessed excessed excessed excesses excesses

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