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 ...

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

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 ...

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 ...

CatalanoFact checked by Ryan EichlerKey TakeawaysCAPM estimates the expected returns of an asset based on its risk.CAPM helps finance professionals assess investment profitability.Beta, a key ...

Benzinga explains the various measures used by smart investors to measure risk and return more accurately. Investing is about getting the most bang for your buck. Average investors chase high returns, ...