Chapter 9 Risk and return 5 Percentage return It is usually more convenient to summarize information about return in percentage terms, rather than dollar return, because that way your return does not depend on how much you actually invest. The question we want to answer is: how much do we get for each dollar we invest Percentage return=(dividends paid at end of period+change in market value over period)/beginning market value 9.2 Inflation and returns Real versus nominal returns The returns we calculated in the previous section are called nominal returns because they were not adjusted for inflationChapter 9 Risk and return – Percentage return It is usually more convenient to summarize information about return in percentage terms, rather than dollar return, because that way your return does not depend on how much you actually invest. The question we want to answer is : how much do we get for each dollar we invest. Percentage return=(dividends paid at end of period+change in market value over period)/beginning market value 9.2 Inflation and returns – Real versus nominal returns The returns we calculated in the previous section are called nominal returns because they were not adjusted for inflation