Excess return on the market portfolio

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Excess return on the market portfolio

Difference between the return on the market portfolio and the riskless rate.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Excess Return on the Market Portfolio

The difference between the return on the market portfolio, a hypothetical portfolio of all securities, and the riskless rate of return, which is usually defined as the return on a 90-day Treasury bill. This may be taken as an indicator of how well (or poorly) the stock market is performing.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved