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What is a Call Option?

A Call Option is a derivative agreement between two parties which gives the buyer the right to buy from the call option seller any asset like a stock, bond, commodity etc. at a specific time and price. One earns a profit on a call when the price of the underlying asset increases. A Call Option […]

What is “Abnormal Rate of Return” in stocks?

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 […]