n NISM Certifications
XVII NISM Series XVII
Medium

Define 'Real Rate of Return'.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Return compared to benchmark returns

  2. B

    Return after adjusting for compounding

  3. C

    Return earned over the entire investment period

  4. Return after adjusting for inflation

    Correct answer

Why this is the answer

The real rate accounts for inflation, reflecting the true increase in purchasing power.

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