Measuring performance
Nominal return
Return measured in currency units, before any adjustment for inflation.
How it works
Every headline return figure is nominal unless it explicitly says otherwise. It is the correct basis for computing tax and the wrong basis for judging progress towards a goal.
Related terms
More in Measuring performance
- Out-of-sample testing
- Money-weighted return
- Overfitting
- Mark to market
- Performance attribution
- Look-ahead bias
- Price return
- Information ratio
All 29 Measuring performance terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.