residual return


Accounting dictionary. 2014.

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  • residual return — return independent of the benchmark. The residual return is the return relative to beta times the benchmark return. To be exact, an asset s residual return equals its excess return ( excess returns) minus beta times the benchmark excess return (… …   Financial and business terms

  • residual income — residual return The net income that a subsidiary undertaking or division of an organization generates after being charged a percentage return for the book value of the net assets or resources deemed to be under its control. The residual income… …   Accounting dictionary

  • residual income — residual return The net income that a subsidiary undertaking or division of an organization generates after being charged a percentage return for the book value of the net assets or resources deemed to be under its control. The headquarters or… …   Big dictionary of business and management

  • Residual-current device — A two pole residual current device A Residual Current Device is a generic term covering both RCCBs and RCBOs. A Residual Current Circuit Breaker (RCCB) is an electrical wiring device that disconnects a circuit whenever it detects that the… …   Wikipedia

  • return on capital employed — ROCE An accounting ratio expressing the profit of an organization for a financial period as a percentage of the capital employed. It is probably one of the most frequently used ratios for assessing the performance of organizations. In making the… …   Accounting dictionary

  • return on capital employed — ROCE An accounting ratio expressing the profit of an organization for an accounting period as a percentage of the capital employed. It is one of the most frequently used ratios for assessing the performance of organizations. In making the… …   Big dictionary of business and management

  • exceptional return — residual return plus benchmark timing return. For a given asset with beta equal to one, if its residual return is 2%, and the benchmark portfolio exceeds its consensus expected returns by 1%, then the asset s exceptional return is 3%. Bloomberg… …   Financial and business terms

  • Solow residual — The Solow residual is a number describing empirical productivity growth in an economy from year to year and decade to decade. Robert Solow defined rising productivity as rising output with constant capital and labor input. It is a residual… …   Wikipedia

  • systematic return — The part of the return dependent on the benchmark return. We can break excess returns into two components: systematic and residual. The systematic return is the beta times the benchmark excess return ( excess returns). Bloomberg Financial… …   Financial and business terms

  • Single-index model — The single index model (SIM) is an asset pricing model commonly used in the finance industry to measure risk and return of a stock. Mathematically the SIM is expressed as:: rit rf = ai + Bi(rmt rf) + Eit ,: R i = alpha i + eta iR m,where:: rit − …   Wikipedia

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