Relative Return

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Dictionary Says

Definition of 'Relative Return'

The return that an asset achieves over a period of time compared to a benchmark. The relative return is the difference between the absolute return achieved by the asset and the return achieved by the benchmark.
Investopedia Says

Investopedia explains 'Relative Return'

Relative returns are most often used when reviewing the performance of a mutual fund manager. Because holders of mutual funds are charged management fees, they expect a manager to achieve returns higher than the benchmark index. For example, if the fund you are holding achieves an absolute return of 12% over the past year while the benchmark index provides a return of 15%, then the fund has achieved a relative return of -3% for the year.

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'Relative Return'

  • What's the difference between absolute and relative return?

    http://www.investopedia.com/ask/answers/118.asp
    ... What's the difference between absolute and relative return? ... Relative return is the
    reason why a 2% return is bad in a bull market and good in a bear market. ...

  • Find Happiness By Altering Life Benchmarks

    http://www.investopedia.com/articles/pf/09/benchmarks-make-the-choice.asp
    ... From an investment perspective, this is referred to as a relative return comparison.
    Common benchmarks include family, friends and the people across town. ...

  • Alternative Assets For Average Investors

    http://www.investopedia.com/articles/financial-theory/08/alternative-assets.asp
    ... Absolute return may be desirable in negative market climates, but can underperform
    relative return (benchmarked) strategies during positive economic climates. ...

  • Quantitative Analysis Of Hedge Funds

    http://www.investopedia.com/articles/mutualfund/09/hedge-fundanalysis.asp
    ... Diligence.) Performance Returns Similar to mutual fund performance analysis, hedge
    funds should be evaluated for both absolute and relative return performance. ...

  • Relative Valuation: Using Stocks To Value Other Stocks

    http://www.investopedia.com/articles/stocks/11/relative-valuation-stocks-valuing-stocks.asp
    ... EBITDA. Another useful metric in relative valuation, return on equity,
    increases as a company takes on more debt. Without looking ...

  • Value Investing + Relative Strength = Higher Returns

    http://www.investopedia.com/articles/financial-theory/08/value-investing-relative-strength.asp
    ... Strategy, Average Annualized Return without Relative Strength. Low P/E Ratio, 11.18%.
    Low P/B Ratio, 14.38%. Low P/S Ratio, 15.42%. --, --. Market Average, 14%. ...

  • Profitability Indicator Ratios: Return On Assets | Investopedia

    http://www.investopedia.com/university/ratios/profitability-indicator/ratio3.asp
    ... is relative to its total assets. The return on assets (ROA) ratio illustrates how
    well management is employing the company's total assets to make a profit. ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Relative ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/relative-purchasing-power-parity.asp
    ... Time-Weighted Return; 2.8 Calculating Yield; 2.9 Statistical Concepts And Market ...
    Pegged Exchange Rate Systems; 5.18 Absolute and Relative Purchasing Power Parity ...

  • Analyzing Mutual Funds For Maximum Return

    http://www.investopedia.com/articles/mutualfund/08/analyzing_mutual-funds.asp
    ... of the fund for each month and look either for months where the relative over/under ...
    the index by 3% in one month will have a very attractive one year return. ...

  • How To Claim A Dependent On Your Tax Return

    http://www.investopedia.com/articles/tax/09/claim-a-dependent.asp
    ... tax credits. In addition to the joint return and citizenship tests, a
    qualifying relative has to meet the following four rules: ...

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