Security A and Security B have similar risks. However, Security A has a higher rate of return than Security B. The return on Security A minus the return on Security B is referred to as which one of the following?
A)market return
B)abnormal return
C)deviated return
D)excessive return
E)real return

Question

Quizplus · Accepted Answer

The difference in returns between two securities with similar risks is referred to as abnormal return.

Security a and Security B Have Similar Risks