The term excess returns is commonly defined as:
A)total portfolio returns, minus the market rate.
B)total portfolio returns, minus the risk-free rate.
C)(portfolio returns minus the risk-free rate) divided by beta.
D)None of the above

Question

Quizplus · Accepted Answer

The term excess returns has many definitions, the one most commonly used is total return on a portfolio (capital appreciation plus dividends) minus the risk-free rate.

The Term Excess Returns Is Commonly Defined As