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Sayed Arif
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Abnormal return - December 9th, 2013

what is abnormal return?discuss abnormal return in detail
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Asad Khan
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Re: Abnormal return - December 9th, 2013

Abnormal return is defined as the difference between the actual return and the expected return which can be attributed to the non-systematic influences. Abnormal returns may be positive or negative depending on the expected returns. Expected returns are primarily calculated by using of the asset pricing models like the CAPM model.
Abnormal returns are generally a consequence of certain events like mergers, dividend announcement, lawsuits etc.

Formula:
Abnormal Return = Actual Return-Expected Return

Example
Suppose that the expected returns on an investor%u2019s portfolio of investments is 10%u0025 (which is generally measured using an index such as the S&P 500) while his actual return is only 6% then the abnormal return = -4%. On the other hand, if the actual return is 15%, abnormal return = 5%.
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Re: Abnormal return - April 20th, 2016

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Originally Posted by sayed123 View Post
what is abnormal return?discuss abnormal return in detail
Hey friend,

Here I am sharing Study Case on Accounting Information and Abnormal Returns, so please download and check it.
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