Excess returns are equal to the:
A)total portfolio return minus the beta.
B)total portfolio return minus the return on the S&P 500.
C)total portfolio return minus the risk-free rate.
D)total portfolio return minus the standard deviation.

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.

Excess Returns Are Equal to The