Glossary

A glossary is a dictionary of terms specific to a certain subject. A biology textbook might have a glossary in the back, so you can quickly look up all those technical words.

Real Rate of Return

Updated on 2023-08-29T11:58:28.488083Z

Real Rate of Return is an annualised return adjusted for inflation in the nominal rate of return. A nominal rate of return is typically an annualised percentage, which keeps the impact of inflation constant over time; however, the purchasing power of currency keeps on changes, which makes real rate a return a better measure to gauge the performance of an asset over time.