nominal return

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 ?
The formula for converting the nominal return into effective annual rate is:-
Treasury returns; improving but, in nominal return terms, still uninspiring public and private equity market return expectations; and relatively more attractive assumptions for credit, value added real estate and infrastructure.
To put the matter another way, nearly all ordinary investors are now being progressively impoverished because the nominal return on their investments is too small to compensate for the loss of the dollar's purchasing power during the term of the investment.
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 bank said that it will target institutional and wealthy clients with the bond offering, which offers a nominal return of 4.
Abraham Sedore was mentioned on a Nominal Return of the Officers and Privates of the Flank Companies of the 1st Regimental Lennox Militia who were out of service in the year 1812.
The rate is linked to the nominal return on government gilts, and is not a variable rate moving in line with base rate.
Using this strategy we find that Zimbabwe's stock market had the greatest nominal return while Kenya's had the lowest return; Botswana's stock market had the best inflation-adjusted return while the stock market of Kenya had the worst return; and Zimbabwe's stock market had the best U.
Doing so:] will eliminate federal and state taxes, so your effective return is higher than the nominal return of, say, 4% that might be quoted for those Treasury securities.
Because the real return is the nominal return divided by the gross inflation rate, expected nominal returns are not necessarily equated.
Table 4 Returns on Farmland Nominal Return (%) Investment Study, by Author(s) Period Farms Residential Ibbotson and Fall 1947-1978 11.
The validity of all the fundamentals of the business model, such as performance and charges and service, are now being questioned," he notes, stressing that there is a growing recognition that a business model that works in a bull market won't succeed in today's nominal return environment.