Dictionary
Dictionary
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Active Return
Definition
The portfolio's return in excess of the portfolio's benchmark.
Using the term Active Return :
A portfolio manager (of beta strategies, i.e. long-only) should specify a benchmark by which to compare their performance. The active return is the return achieved in excess of the benchmark. This is sometimes referred to as alpha (as opposed to beta, which is the return of the market benchmark). Alpha is extra return above the benchmark.
Pay Special Attention To :
Try to ensure that the active return is not coming with an undue amount of active, or additional risk, in the portfolio that might come from the portfolio manager using too much leverage.
Rate this definition:
Related terms
Absolute Return Vehicles
'Active Return' appears in the definitions of these other terms:
Active Immunization Combination
