Abnormal Rate of Return

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What is Abnormal Rate of Return? Meaning.

Abnormal Rate of Return is a return on a security that differs from the market's expected rate of return, or from the return that a security would normally produce.

In the context of stock returns it means the return to a portfolio in excess of the rate of return to a market portfolio.

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Compare with: Internal Rate of Return  |  Efficient Market Hypothesis

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