Investor Glossary-real rate of returnInvestor Glossary-real rate of returnInvestor Glossary-real rate of returnInvestor Glossary-real rate of returnInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Real Rate Of Return

The HTML to link to this page
 

The real rate of return is the rate of return on an investment after taking inflation into account. The nominal rate of return (ignoring inflation) is higher than the real rate of return if inflation is positive. The higher the level of inflation, the larger the difference between the real rate of return and the nominal rate of return. The longer the period of the rate of return, the more important it is to consider the real rate of return. The real rate of return is zero if the nominal rate of return matches inflation. The real rate of return is negative if the nominal rate of return is less than the rate of inflation. Unless inflation is very high, the real rate of return will be very close to the nominal rate of return over short periods.



Rate this real rate of return definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use