Real Rate of Return

Real Rate of Return
The Real Rate of Return is an investment's annual percentage profit that is adjusted for changes in prices due to inflation or other external factors. Unlike the nominal rate of return, which does not account for inflation, the real rate of return provides a more accurate measure of purchasing power.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.