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| In [[finance]], '''active return''' refers to that segment of the [[financial return|returns]] in an [[investment portfolio]] that is due to [[active management]] decisions made by the [[portfolio manager]]. It does not include any return that is merely a function of the market's movement. The active return is calculated as the return of the portfolio minus some benchmark return,<ref>{{cite web|title=Active Returns financial definition|url=http://financial-dictionary.thefreedictionary.com/Active+Return|accessdate=June 30, 2012}}</ref> e.g. from an [[index fund]] such as the [[S&P 500]]. If <math>R_p</math> denotes the return for the portfolio and <math>R_b</math> denotes the return for the benchmark, then the active return is given by <math>R_p - R_b</math>, and can be either positive or negative.
| | Hi there! :) My name is Eulah, I'm a student studying Business from Neusiedl, Austria.<br><br>Also visit my blog [http://www.riversidemediagroup.com/uggboots.asp Cheap UGG Sale] |
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| ==See also==
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| * [[Active risk]]
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| * [[Information ratio]]
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| * [[Tracking error]]
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| ==References==
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| {{Reflist}}
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| [[Category:Financial terminology]]
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| {{finance-stub}}
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Latest revision as of 21:25, 24 August 2014
Hi there! :) My name is Eulah, I'm a student studying Business from Neusiedl, Austria.
Also visit my blog Cheap UGG Sale