True or false. the nominal return is the return on an investment after the impact of inflation and taxes is taken into account.

False

Explanation:

Nominal return signifies an amount which is not adjusted for inflation and taxes.

Real return on the contrary, is what is arrived at once nominal return is adjusted for taxes and inflation.

Nominal rate of return maybe termed as Gross Return or unadjusted return which an investment generates before adjusting the effects of inflation and taxes.

On the other hand, Real return represents Net Return or adjusted return.

Thus, the above statement is False.

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