Today's financial term of the day is Abnormal Return.
Abnormal Return describes the returns that are made by a particular security or portfolio based on a given time period and which is different from the expected rate of return. Abnormal returns can be either positive or negative depending on what kind of difference is posted in relation to the expected rate of return. For example if the earnings from a particular portfolio is more than the expected rate of return then it is a positive abnormal return. If the return is less than the expected rate of return then it is a negative abnormal return.
Check back daily for more financial insights, terms, news and updates.
