Relative Return


Also found in: Wikipedia.

Relative Return

In investing, the return on an asset or other investment compared to some benchmark. For example, the return on a stock may be 8% over a given period of time. This may sound rather high, but if the return on the designated benchmark index is 20% over the same period of time, then the relative return on that stock is in fact -12%. The relative return is important for determining how the return of a given stock or fund compares to that of other potential investments. This can be useful in making investment decisions.
Mentioned in ?
References in periodicals archive ?
Companies with higher risk-management maturity experience higher relative stock-price returns, lower volatility in stock price, higher relative return on equity and greater resilience in the immediate aftermath of significant financial-market risk events, an Aon study shows.
Khartoum Aug 18 (SUNA) - The Member of the Steering committee of Abyei Administration has affirmed relative return of stability to Abyei area, pointing out that the memo of understanding recently signed between AL-Mysseria and Dinka Ngok has contributed widely to the calmness of the security situations in the area as well as the repatriation of Dinka Ngok to Abyei town after they fled earlier to the village of (Anet) and other villages fearing security tensions.
Leveraging this efficiency, in addition to a relative return strategy, the firm also announced the launch of the INTECH Global Dividend Low Volatility strategy, focused on absolute rather than relative risk.
Pinetree's investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities.
The relative return to economic stability has allowed private equity investors and management teams to gain improved visibility over predicted earnings and market opportunities -which has been central to the upturn in deal value.
Attempting to concretely describe the constantly evolving field of social media--particularly the multitude of potential business applications and their relative return as compared with other activities--can be difficult.
3,439,270 $2,868,765 Sales [e] $ 4,537 MM $ 4,053 MM $ 4,075 MM $ 4,042 MM Annual Return 17% 26% 15% 16% Relative Return [f] 0% -18% -3% -3% 1994 1995 1996 1997 Total Compensation $2,326,067 $2,498,329 $3,105,407 $ 4,969,740 Salary [a] $ 636,722 $ 661,191 $ 748,658 $ 1,502,191 Bonus [b] $ 557,557 $ 618,818 $ 764,730 $ 854,454 Stock 0ption Grants [c] $1,131,787 $1,218,319 $1,476,289 $ 2,585,081 Unexercised Options [d] $2,917,125 $4,335,428 $7,799,367 $10,864,886 Sales [e] $ 4,229 MM $ 4,414 MM $ 4,834 MM $ 5,722 MM Annual Return 4% 20% 22% 28% Relative Return [f] 8% -3% 6% 11% 1998 Total Compensation $ 3,655,753 Salary [a] $ 967,388 Bonus [b] $ 807,335 Stock 0ption Grants [c] $ 1,869,137 Unexercised Options [d] $15,898,607 Sales [e] $ 5,166 MM Annual Return 3% Relative Return [f] 5%
If the relationship between the current relative P/E ratio based on projected earnings and the projected relative return on equity differs substantially from the past relationship indicated on the charts, then a relative over- or undervaluation may exist and present a selling or buying opportunity.
The exchange rate must fall or the interest rate must rise to match demand and supply, with the size of the change depending upon the sensitivity of asset demands to the relative return on sterling compared with foreign currency, as measured by the difference in interest rates plus the expected fall in the exchange rate.
o The relative return on the portfolio of quoted assets, excluding alternative investments and costs, amounted to 1.
Pinetree s investment approach is to develop a macro view of a sector, build a position consistent with the view by identifying micro-cap opportunities within that sector, and devise an exit strategy designed to maximize our relative return in light of changing fundamentals and opportunities.
Having undergone a relative return to form last year following a quiet 2009 - spent shoring up portfolio companies, waiting for those hotly anticipated green shoots - there are still plenty of private equity houses with cash to invest in the strongest regional assets.