Answer:
Real.
Step-by-step explanation:
A real rate of return can be defined as an annual profit percentage that an individual or organization earns on their investment, which is normally adjusted for inflation.
Basically, the increase you realize in buying power as a result of owning an investment is referred to as the real rate of return.
This ultimately implies that, a real rate of return represents or depicts an actual purchasing power of an amount of money (liquid assets) owned by an individual or organization over a specific period of time.
The real rate of return can be calculated by subtracting the inflation rate from the nominal rate.
