aftertax real rate of return Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: aftertax real rate of return

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aftertax real rate of return

amount of money, adjusted for inflation, that an investor can keep, out of the income and capital gains earned from investments. Every dollar loses value to inflation, so investors have to keep an eye on the aftertax real rate of return whenever they commit their capital. By and large, investors seek a rate of return that will match if not exceed the rate of inflation.

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