What are excess returns

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    What are excess returns
    Assalamualaikum dears member main thek Hun or umeed Karti hun AP bhi thek Hun gy or forex trading foram par boht achi earning kar rahy hn gy Mera AJ ka sawal boht zaiyada important or knowledge Wala hy Mera sawal hy trading foram
    Main excess returns kia hy or us ko use kar k kis tarha profit hasil kar sakty hain umeed Karti hun Mera ye sawal AP ko boht zaiyada information provide kary ga

    Introduction

    izafi wapsi proxy ki wapsi ke oopar aur is se agay ki wapsi hai. izafi munafe ka inhisaar tajzia ke liye muqarrar kardah sarmaya kaari ki wapsi ke muqablay par hoga. wapsi ke kuch bunyadi mowaznah mein khatray ke baghair sharah aur tajzia kiye jane walay sarmaya kaari ke liye isi terhan ke khatray ke mayarat shaamil hain. izafi munafe aik ahem metric hai jo sarmaya car ko dosray sarmaya kaari ke mutabadil ke muqablay karkardagi ka andaza laganay mein madad karta hai. aam tor par, tamam sarmaya car misbet izafi wapsi ki umeed rakhtay hain kyunkay yeh aik sarmaya car ko is se ziyada raqam faraham karta hai jo woh kahin aur sarmaya kaari kar ke haasil kar satke thay. izafi wapsi ki shanakht kisi doosri sarmaya kaari mein haasil honay walay kal wapsi ke feesad se aik sarmaya kaari ki wapsi ko ghata kar ki jati hai. izafi wapsi ka hisaab lagatay waqt, wapsi ke mutadid iqdamaat istemaal kiye ja satke hain. kuch sarmaya car khatray se pak sharah par apni sarmaya kaari mein farq ke tor par izafi munafe dekhna chahtay hain. doosri baar, isi terhan ke khatray aur wapsi ki khususiyaat ke sath qareeb se mawazna karne walay bench mark ke muqablay mein izafi wapsi ka hisaab lagaya ja sakta hai. qareeb se mawazna karne walay bench marks ka istemaal aik wapsi ka hisaab hai jis ke nateejay mein izafi wapsi ki pemaiesh hoti hai jisay alpha kaha jata hai. aam tor par, wapsi ka mawazna misbet ya manfi ho sakta hai. misbet izafi wapsi zahir karti hai ke aik sarmaya kaari ne is ke muqablay mein behtar karkardagi ka muzahira kiya, jab ke munafe mein manfi farq is waqt hota hai jab koi sarmaya kaari kam karkardagi dukhati hai. sarmaya karon ko yeh baat zehen mein rakhni chahiye ke khalstan sarmaya kaari ke munafe ka kisi bench mark se mawazna karne se aik izafi wapsi millti hai jo zaroori nahi ke taqabli proxy ke tamam mumkina tijarti akhrajaat ko mad e nazar rakhay. misaal ke tor par, s & p 500 ko bench mark ke tor par istemaal karne se wapsi ka aik izafi hisaab milta hai jo ke aam tor par index mein mojood tamam 500 astaks mein sarmaya kaari karne ke liye darkaar asal akhrajaat ya s & p 500 mendent fund mein sarmaya kaari ke liye intizami fees ko mad e nazar nahi rakhta hai .
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    Excess return vs riskless rates

    be khatar aur kam khatray wali sarmaya kaari aksar sarmaya karon ki taraf se istemaal ki jati hai jo mukhtalif maqasid ke liye sarmaye ko mehfooz rakhnay ki koshish karte hain. you s trader ko aam tor par be khatar sikyortiz ki sab se bunyadi shakal samjha jata hai. sarmaya car aik mah, do mah, teen mah, chay mah, aik saal, do saal, teen saal, paanch saal, saat saal, 10 saal, 20 saal aur 30 ​​saal ki machurity ke sath Amrici khazanay khareed satke hain. 12 har maturity mein you s trisri ki pedawar ke munhani khutoot ke sath aik mukhtalif mutawaqqa wapsi miley gi. 3 kam rissk ki sarmaya kaari ki deegar aqsam mein dpazts ke srtifkit, money market accounts, aur municiple band shaamil hain. sarmaya car khatray se pak sikyortiz ke muqablay ki bunyaad par izafi wapsi ki satah ka taayun kar satke hain. misaal ke tor par, agar aik saal ke trisri ne 2. 0 % wapas kya hai aur technology stock meeta ( Sabiqa ​​face buk ) ne 15 % wapas kya hai, to meeta mein sarmaya kaari ke liye haasil kardah izafi munafe 13 % hai .

    Key Take away

    izafi wapsi proxy ki wapsi ke oopar aur is se agay ki wapsi hai. izafi munafe ka inhisaar tajzia ke liye muqarrar kardah sarmaya kaari ki wapsi ke muqablay par hoga. jo sarmaya kaari ka tajzia kya ja raha hai is ke liye khatray ki yaksaa satah ke sath be khatar sharah aur bench marks ko aam tor par izafi wapsi ka hisaab laganay mein istemaal kya jata hai. alpha izafi wapsi metric ki aik qisam hai jo qareeb se mawazna bench mark se ziyada karkardagi ki wapsi par markooz hai. jadeed port folyo theory ka istemaal karte waqt izafi wapsi aik ahem khayaal hai jo aik behtar port folyo ke sath sarmaya kaari karna chahta hai .

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  • #2 Collapse

    Re: What are excess returns

    Excess returns are the returns earned by an investment that exceed the returns of a benchmark or a risk-free rate of return. In other words, excess returns are the additional returns earned by an investment over and above what would be expected based on the level of risk taken.
    For example, if an investment earns a return of 10% and the benchmark or risk-free rate of return is 5%, the excess return would be 5%. This excess return is the additional return earned by the investment over and above what would be expected based on the level of risk taken.
    Excess returns are often used by investors and fund managers to evaluate the performance of an investment or a portfolio. By comparing the excess returns of an investment or portfolio to a benchmark or risk-free rate of return, investors can determine whether the investment or portfolio is generating returns that are commensurate with the level of risk taken.
    Excess returns can also be used to evaluate the performance of fund managers. Fund managers who consistently generate excess returns over a benchmark or risk-free rate of return are considered to be skilled and may attract more investors. Conversely, fund managers who consistently underperform a benchmark or risk-free rate of return may be considered to be unskilled and may lose investors.

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