nominal return

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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.
References in periodicals archive ?
This could provide some room for downward adjustment in nominal returns to cater to broad macroeconomic considerations despite external account concerns.
Based on M&A related expectations, Yapi Kredi Sigorta posted 33% and 82% nominal returns within the last three and 12 months, respectively, and outperformed the ISE-100 by 25% and 35%, respectively, in the aforementioned periods.
Bodie (1976) worked on Fisher Hypothesis and found that actual nominal return depends on expected and unexpected inflation rates and also it depends on expected and unexpected nominal returns.
The policy of quantitative easing, designed to stimulate consumption, has an impact on savers - who face negative real returns - or even sometimes, negative nominal returns.
More precisely, a 30-70 basis point reduction in annual expected returns over a ten-year period in an environment of, say, 8 percent average nominal returns means a terminal wealth that is five to thirteen percentage points lower than would have been otherwise realized.
The five panels of Figure 2 show the cumulative frequency distributions over the tightening and easing policy stances for nominal short- and long-term yields and the 1-year realized nominal returns on long-term Treasuries, the S&P 500 Composite equity index, and home prices.
For the markets themselves, it is not so much the increase in consumption prices that is the problem, but rather the reactions that it triggers in terms of increases in the nominal returns demanded by investors.
This means that nominal returns that appear to be 9 percent, in truth can become 2 percent or less.
It may be bad for borrowers but it would benefit many savers who have had a very raw deal with nominal returns.
It is clear from Table 3 that taxes matter a lot for portfolio composition with the implication that research based on nominal returns and, to some extent Fisher real returns, can be very misleading by ignoring the level effect of taxation.
Cash ISA: Although this gives "tax free" growth, the minimal nominal returns leaves your cash vulnerable to inflation, given that interest rates barely keep up with inflation at the best of times.
The 'Tax Effect' Nominal Returns Total Return Volatility Lehman Municipal Bond: 7-Year 4.