The excess return is the difference between the average return on a security and the average return for:
A)Treasury Bonds.
B)a portfolio of securities with similar risk.
C)a broad-based market portfolio like the S&P 500 index.
D)Treasury Bills.

Question

Quizplus · Accepted Answer

Excess return is typically calculated as the difference between the return on a security and the risk-free rate, which is often represented by the return on Treasury Bills.

The Excess Return Is the Difference Between the Average Return