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Real Rate of Return
What does it mean?
The annual percentage return realized on an investment adjusted for changes in prices due to inflation or deflation.
In Other Words...
If you earn 10% on an investment, but inflation is 2%, then your real rate of return is actually 8%.
Related Links
All about Inflation Tutorial - What causes inflation? How does it affect your investments and standard of living? This tutorial has the answers.
Related Terms
Deflation | Inflation | Real Interest Rate | Return
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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
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