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The Real rate of return which is the annualized rate of return on an investment plus...

Question

The Real rate of return which is the annualized rate of return on an investment plus...

The Real rate of return which is the annualized rate of return on an investment plus the rate of inflation. My question is whether the Real rate of return also takes into account the effect of taxation ?

Answers

No real rate of return is before tax rate

After tax real rate of return = (1+nominal rate*(1-tax rate))/(1+inflation rate)-1


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