Extra Return on an asset compared with its Required rate of return. For an Investment fund, this is the extra Return compared with an index that is representative of the Assets held by the fund, for example, the FT 100 for a fund that invests in major English shares. The fund is said to outperform its Market.

(See Chapter 18 Risk and return of the Vernimmen)

To know more about it, look at what we have already written on this subject