If you earn a 10% nominal return on an investment, are you really 10% more wealthy?
a. No, because there may be inflation, which causes your real return to be less
b. No, because if inflation = 0, then your real return is less
c. Yes, because you really have 10% more dollars
d. Yes, because inflation does NOT effect your real wealth
e. Yes, because nominal returns are the returns widely published & quoted in the press
The response discusses the real return. If you earn a 10% nominal return on an investment, are you really 10% more wealthy is determined.