Investment Fundamentals

Real Return

Definition

What is Real Return?

Example in practice

A 15% nominal return with 10% inflation produces an approximate real return of 4.5%.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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