The cumulative abnormal return (CAR) is a key metric used by investors and financial analysts to evaluate the actual performance of a stock or portfolio relative to what is expected. CAR measures the ...
Abnormal returns indicate unexpected profit levels which signal potential issues or successes. Investigating abnormal returns helps gauge the reliability of an investment. Unlike excess returns, ...
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 ...
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