answersLogoWhite

0


Best Answer

Excess Returns is the difference between what was gained on a risky investment, versus what one would have gained if they had not taken the risky investment and instead had invested in a risk-free investment. Any more they made taking the risk than they would have otherwise is considered to be a positive excess return.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar
More answers
User Avatar

AnswerBot

1y ago

To calculate excess returns, subtract the risk-free rate of return from the actual return on the investment. Excess returns show the additional return earned above the risk-free rate, which represents the compensation for taking on additional risk. It is commonly used to evaluate the performance of an investment or portfolio.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How do you calculate Excess Returns?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

If you filed for chapter 13 can you spend your tax returns?

No, if you're in Ch. 13 you're supposed to send your refund in to the trustee who will calculate the 'reasonableness' of the refund and send you any excess (sure they will)


What does the word profit?

Profit is an excess of returns over outlay.


What process returns excess tissue fluid to the blood?

The Lymphatic System .


How to calculate excess moles of acid in titration?

To calculate the excess moles of acid in a titration, subtract the moles of base used from the initial moles of acid. This will give you the amount of acid that was not neutralized by the base and therefore the excess moles of acid present in the solution.


What system that collects excess fluid around cells and returns it to your blood?

The lymphatic system The lymphatic system


Can I calculate my investment return online?

You can calculate investment return online. You can go to www.calculatorpro.com ��_ Financial or www.dinkytown.net/java/InvestmentReturn.html in order to calculate the returns online.


When an atom returns to its ground state what happens to the excess energy of the atom?

it is released (emitted) as part of the electromagnetic spectrum.


When an atom returns to the ground state what happens to the excess energy of the atom?

it is released (emitted) as part of the electromagnetic spectrum.


Can you receive your tax refund if you didn't file the previous year?

It is not possible to get refund unless we file the income tax returns. When we file returns it will check with OLTAS and generate refund if paid excess


How do calculate net sales?

Net sales = Total sales - sales returns and discounts


How do you calculate the Omega Ratio in Excel?

The Omega Ratio is the probability-weighted gains divided by the probability-weighted losses after a threshold. You need to calculate the first-order lower partial moments of the returns data. This sounds difficult but it's very easy. A spreadsheet to implement this formula can be found at the related link below If the cell range "returns" contain the investment returns, and the cell "threshold" contains the threshold return, then the Omega Ratio is ={sum(if(returns > threshold, returns - threshold,"")) / -sum(if(returns < threshold, returns - threshold, ""))} where the {} represent a matrix formula


What returns excess fluid and proteins from the intercellular spaces to the blood?

The lymphatic system, or the lymph system, they're the same thing.