Answer:
The correct answer of the given question is B) an abnormal return
Explanation:
Abnormal return which is also termed as excess return or alpha return , is the rate of return which we get from the portfolio ( portfolio's return ), which is not explained by the rate of return of market. This abnormal return can be positive or negative, and that depends on what the actual return would be in relation to the normal return. So we can say that the abnormal return can be calculated as -
Actual return - Normal return
