ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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RISK ADJUSTED RETURN Definition
RISK ADJUSTED RETURN is when we subtract from the rate of return on an asset a rate of return from another asset that has similar risk. This gives an abnormal rate of return that shows how the asset performed over and above a benchmark asset with the same risk. We can also use the beta against the benchmark to calculate an alpha which is also risk adjusted performance.
Learn new Accounting Terms
INDEX STOCK is a security listed on a stock index. See STOCK INDEX.
BILLINGS IN EXCESS OF COSTS see COST IN EXCESS OF BILLINGS.