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Real vs Nominal Returns: CNBC Explains

Fri 23 Sep 11 | 06:00 AM ET
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Real vs Nominal Returns: CNBC Explains

Fri 23 Sep 11 | 06:00 AM ET
When calculating returns over time, it is important to know the difference between nominal returns (returns on paper) and real returns (adjusted for today's purchasing power). How can you tell the difference and what factors should you keep in mind when calculating them? Salman Khan of the Khan Academy explains.
 
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