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 ?
And he adds that capital investment is not a barrier, with the world "awash" with money as a result of years of quantitative easing and the "eight trillion dollars of global funds invested in assets earning a negative nominal return".
r = nominal return divided by number of times compounding is done in a year
Elongating the perspective to bring us to the end of last week, we can see that the large-growth oriented S&P 500 delivered a respectable if slightly depressed 7.7% annual return -- certainly way ahead of the cash investor saw just 2.3% nominal return on his money these 18 years.
Inasmuch as the co-movement of nominal stock returns and nominal interest rates could be due to changes in expected inflation, the hypothesis is tested using real as well as nominal return data.
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.
Over the past two decades, investing one's entire portfolio in farmland would have yielded the greatest nominal return, equivalent to compound annual growth of 10.9 percent per annum.
"If investors," Custard says, "demand a real return of 2% and inflation is 2% they need a nominal return of 4%.
The bank said that it will target institutional and wealthy clients with the bond offering, which offers a nominal return of 4.25 percent.
In estimating the after-tax nominal return, we apply average marginal tax rates as reported in Appendix Table B3 to corresponding components of assets in consideration.
However, year-to-date, the region has posted a nominal return of 0.85%.
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.