Abnormal Rate of Return
Alpha is a financial measure which measures performance. It is often seen as an active return on investment and is the difference between investment and benchmark return. It is an estimated numeric value of an expected excess return of a stock relative to the return on benchmark index depending on the volatility in the market. ..
Abnormal Rate of Return is the return on a given stock or portfolio over a specified period of time. This is usually higher than the expected rate of return or the benchmark. It is also known as ‘alpha’ and is a risk-adjusted performance measure of the stock. The expected rate of return is usually predicted ..