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The cash budget preparation process has four stages: forecasting income, forecasting expenses, categorizing expenses, and making adjustments.
Superior Returns
Returns that exceed the performance of a benchmark index or the average returns of a particular investment category.
Neglected-firm Effect
A theory suggesting that lesser-known, smaller companies can provide higher returns than their larger counterparts due to lack of analyst coverage.
Excess Returns
Returns on an investment that exceed a benchmark or average return, indicating higher-than-expected performance.
Abnormal Returns
Returns on a security or portfolio that exceed what is predicted by market models, such as the CAPM, indicating outperformance.
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