The difference between the return on a stock (or entire portfolio) and the performance of an index, such as the S&P 500. The abnormal return is equal to the market return - the normal return. For example, a stock that provided a return of 10% over the same period of time in which an index provided a 6% return would have an abnormal return of 10% - 6% = 4%. If the abnormal return is negative then it has underperformed the index.
Related information about abnormal return:
- Abnormal return - Wikipedia, the free encyclopedia
In finance, an abnormal return is the difference between the actual return of a security and the expected return. Abnormal returns are sometimes triggered by ...
- Abnormal Return Definition | Investopedia
A term used to describe the returns generated by a given security or portfolio over a period of time that is different from the expected rate of return. The expected ...
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Abnormal Returns - A wide-ranging, forecast-free investment blog.
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The difference between the expected return and the actual return on an investment. Abnormal returns may be either positive or negative; indeed an abnormal ...
- Abnormal Return Definition & Example | InvestingAnswers
We explain the definition of Abnormal Return, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- What is abnormal return? definition and meaning - InvestorWords.com
Definition of abnormal return: The difference between the return on a stock (or entire portfolio) and the performance of an index, such as the S&P 500.
- How to Calculate Abnormal Returns With Stock Prices and S&P ...
Abnormal returns occur when a stock's actual return is greater than its expected return. Calculating an abnormal return is relatively easy. The expected return is ...
- What is abnormal return? - BusinessDictionary.com
Definition of abnormal return: Periodic return on an investment portfolio that is more or less than the average return on all the stocks traded on an exchange ...