In CAPM, an investment performance that exceeds the predicted return, i.e., the risk free rate + the equity risk premium.
The return achieved by a security over and above that obtained from a risk-free asset (such as a short-term government bond) held over the same period.
Return relative to the risk-free return. If an asset return is 10% and the risk-free return is 5%, then the asset's excess return is 5%. The benchmark's return can be substituted for the risk-free return.
The difference between the returns of two portfolios. Usually excess return is the difference between a manager's return and the return of a benchmark for that manager.
The return on a security which exceeds that obtained from a risk-free asset (such as a short-term government bond) held over the same interval.
The return derived from a security (during a specified holding period) less the return from holding a riskless security (such as a short-term government obligation) during the same period.