Terms Beginning With 'r'

Real Rate of Return

  • January 22, 2020
  • Team Kalkine

Real Rate of Return is an annualised return adjusted for inflation in the nominal rate of return. A nominal rate of return is typically an annualised percentage, which keeps the impact of inflation constant over time; however, the purchasing power of currency keeps on changes, which makes real rate a return a better measure to gauge the performance of an asset over time.

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