The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

EXCESS RETURN Definition & Legal Meaning

Definition & Citations:

Difference between higher return rate and a lower risk free rate. An example is a return rate is 5 percent and a risk free rate of 1.5 percent results in a investment’s excess return of 3.5 percent. Compare with abnormal return.


This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.