Abnormal Returns refer to the difference between the actual returns of an investment and the expected returns based on a benchmark or market index. This concept helps investors assess how well an asset is performing relative to what is anticipated, considering factors like market conditions and risk. Investors often use abnormal returns to evaluate the effectiveness of their investment strategies or the performance of fund managers. Positive abnormal returns indicate that an investment has outperformed expectations, while negative abnormal returns suggest underperformance. This analysis can guide future investment decisions and strategies.