Month: June 2021

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Trading Ideas

What is an Abnormal Return?

June 13, 2021 admin Comments Off on What is an Abnormal Return?

When investing, it can be jarring to expect one thing, and for something completely different to happen. Specifically, when your investment shows an abnormal return. What is an abnormal return? As the name would imply, it’s a deviation from the expected rate of return, and it could go either way.
Abnormal return is a phenomenon many investors will encounter. Sometimes, you’re able to pinpoint and measure the catalyst that caused an abnormal return. Other times, market forces work mysteriously to affect returns in ways you can’t fathom. However it impacts you, it’s important to recognize an abnormal return when it occurs. …read more […]