Abnormal Returns

is the difference between the actual return and that is expected to result from market movements -normal return.

Abnormal return is the difference between an investment’s actual return and its expected return based on a benchmark or risk model, often used in event studies.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Abnormal Returns** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.