Excess returns are returns achieved that are more significant than the return of a proxy. Excess returns will depend on a designated investment return comparison for analysis.

Excess return refers to the return on an investment that surpasses the return of a benchmark or a risk-free rate. It measures the performance of an investment in relation to its expected or required ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

Investing is about putting money at risk in order to earn a return. In theory, the more risk an investor is willing to accept, the more returns he or she should expect to earn to compensate for the ...

Discover how to calculate covariance to assess stock relationships and optimize your portfolio, balancing risk and potential ...

Every investment involves a possible gain and a possible loss. The risk/reward ratio compares how much you could lose to how much you could gain. Calculating this ratio may help you decide whether a ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...

Professor Marshall Ketchum eyed the young graduate student. His colleague, Professor Marschak, former director of the Cowles Commission for Research in Economics, had directed the student to get a ...