The real rate of return on a stock is approximately equal to the nominal rate of return:

Name: The real rate of return on a stock is approximately equal to the nominal rate of return:
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The real rate of return on a stock is the nominal rate of return adjusted for inflation. Therefore, the nominal rate of return must be reduced by the inflation rate to obtain the real rate of return. This means that the real rate of return is approximately equal to the nominal rate of return minus the inflation rate.

The Real Rate of Return on a Stock Is Approximately