Inflation-Adjusted Return

Inflation-Adjusted Return

Inflation-Adjusted Return

Inflation-adjusted returns are the real return an investor receives on an investment. It takes the nominal return of a security and deducts inflation, arriving at a real return. Comparing investment opportunities on an inflation-adjusted basis, particularly across borders, is critical to arrive at real comparisons. Bear in mind a positive nominal return can be negative in real terms if inflation is higher than the nominal return.

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