Excess Returns

What Does Excess Returns Mean?
Returns in excess of the risk-free rate or in excess of a market measure, such as an index fund.

Investopedia explains Excess Returns
In other words, when you have excess returns you are making more money than if you put your money into an index fund like the Dow Jones Industrial Average (DJIA).

Related Terms

Alpha Generator
Dow Jones Industrial Average - DJIA
High Minus Low - HML
Index Fund
Information Ratio - IR
Market Proxy
Market Proxy
Null Hypothesis
Return
Risk Free Rate of Return
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