Abnormal stock return is calculated as:
A) actual stock return-expected stock return
B) return on stock-return on market
C) return on stock for the current period-return on stock for the previous period
D) none of the above

Question

Quizplus · Accepted Answer

Abnormal stock return is the difference between the actual stock return and the expected stock return, which is based on the performance of the overall market and the company's industry. Therefore, option A is the correct choice. Options B and C do not accurately define abnormal stock return. Option D is incorrect as well, as one of the other options is correct.

Abnormal Stock Return Is Calculated As