nominal return

(redirected from Continuously compounded nominal and real returns)
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Nominal Return

The rate of return on an investment without adjusting for inflation. It is calculated simply by taking the dollar amount of the return and comparing it to the amount invested. A high nominal return does not guarantee a real profit. For example, if the nominal return on an investment is 7% and the inflation rate is 4%, the real rate of return is only 3%.

nominal return

The rate of return on an investment without adjustment for inflation. While nominal return is useful in comparing the returns from different investments, it can be a very misleading indication of true investor earnings on an investment. Compare real return.
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