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See Relative Return.

Related or Semi-related Video

Finance: What Is a Real Return?67 Views

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finance- a la shmoop. what is a real return? like is there a fake return? you

00:09

know like the news? well kinda .real return refers to an [man frowns talking to camera]

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investment return mapped against inflation. so let's say you invest in a

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bond that pays five percent a year for ten years and then pays you back your

00:21

principal .boring but nice- you know like a good doctor visit. your nominal return

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over that period was 5% but since inflation was 3% a year during that

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period on average your real return was only 2% a year- meaning that the

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performance of your investment only eked out a 2% net gain against the price of [equation]

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milk gas and you know knocked off iPhones. so don't be a chump who thinks

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that they're making more money than they really are, and you know keep on keeping

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it real. [man sitting in chair, talks to camera]

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