How are abnormal returns defined?
A)Returns in excess of the market return
B)Returns in excess of the risk-free rate
C)Returns in excess of the risk-adjusted expected return
D)Positive return

Question

Quizplus · Accepted Answer

Abnormal returns are defined as returns in excess of the risk-adjusted expected return, meaning they are the returns that exceed what is predicted by an asset's risk level and the market's overall performance.

How Are Abnormal Returns Defined