The return an investor receives after accounting for the effects of inflation (i.e., the increase in buying power) is known as the:

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The return that an investor receives after accounting for the effects of inflation is known as the real rate. It reflects the increase in buying power of the investor's money. The effective annual return (A) is the actual return earned on an investment per year, taking into account compounding. The nominal return (B) is the return on an investment without adjusting for inflation. The annual percentage return (C) is a general term that can refer to either nominal or real return. The bond equivalent yield (E) is the annualized return on a bond, assuming that it pays semi-annual coupons.

The Return an Investor Receives After Accounting for the Effects