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An image of a balance scale with coins appearing from unforeseen angles, representing abnormal returns in finance.

Understanding Abnormal Returns and Their Significance in Finance

March 28, 2024 FinanceFacts101 Investments

Introduction to Abnormal Returns Abnormal returns are a crucial concept in finance that refers to the unexpected gains or losses generated by investments or portfolios over a specific time frame. These returns diverge from the predicted, or expected, return (RoR). This difference can be attributed to various factors such as

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