The cumulative abnormal return (CAR) is a key metric used by investors and financial analysts to evaluate the actual performance of a stock or portfolio relative to what is expected. CAR measures the ...
When investing, it can be jarring to expect one thing, and for something completely different to happen. Specifically, when your investment shows an abnormal return. What is an abnormal return? As the ...
In this article, we'll go through: 1. What a cumulative return is and how to calculate it. 2. What the annualized return is, why it comes in handy, and how to calculate it. What is a cumulative return ...
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