Residual Return

Residual Return

Return independent of the benchmark. The residual return is the return relative to beta times the benchmark return. To be exact, an asset's residual return equals its excess return minus beta times the benchmark excess return.

Residual Return

A return on an investment that is independent of the investment's benchmark. It is calculated as follows:

Residual return = Excess return - (Benchmark's excess return * beta).
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Any material clinging to the cable and disc assembly can be continually removed during operation by the stiff bristles of a brush box or by a residual return chute equipped with a disc ramp that dislodges material and returns it to the product stream.
Proprietary economization software virtually eliminates liquid cylinder vent loss and substantially reduces residual return.
estate is reduced to a 0% residual return by the incurrence of 10%
Series 642's integral Web server enables remote access, integrated Ethernet connectivity provides for seamless network integration, e-mail notification allows for 24/7 system monitoring, and Low-Loss technology reduces residual return, while an electronic economizer eliminates liquid can vent loss, a NEMA-4 cabinet allows for simple installation, and an internal-balance stem-line regulator ensures total process control.
49) Even a trust where the residual claimants are third parties--as in husband transferring a life-estate in assets for the benefit of his wife, residual to his children does not create the degree of conflict that occurs between a corporation's creditors and shareholders: the children, receiving a gift for which they gave nothing in return, could not reasonably expect the trustee to jeopardize the wife's life-estate solely in order to maximize the children's residual return.
If expectational rate of return models do not eliminate residual return commonalities, the assumption that observations are independent will be violated.
For this reason, its total annual cost of capital is represented by the residual return to capital (the residual of total operating revenue after subtracting costs of labor and material inputs).
This translates into an immediate, tangible and residual return on security investment," he added.
Equation (1) says that an initial franchisee with an exclusive territorial guarantee receives for certain the residual return from a single retail outlet plus half of the incremental profits from installing a second retailer when doing so is profit maximizing.
This implies that the daily excess return of companies in the Chapter 11 sample is significantly lower than the corresponding residual return of the non-Chapter 11 group with the same bond downgrading.
The prediction error or residual return is defined as [PE.
Similarly, for each year, estimated outcomes that are more than the total expected outcome for that year contribute to expected residual returns, which in this illustration is $990,000 in Year 1 and $986,000 in Year 2, for a total expected residual return of $1,976,000.