Fill in the blank fields in this text: A real rate of return has been adjusted for

A real rate of return has been adjusted for inflation, which allows investors to understand the actual purchasing power of their returns after accounting for the decrease in value of money over time. By using the real rate of return, one can better assess the performance of an investment and its potential to grow wealth in the face of rising prices. For example, if you earn a nominal return of 6% on your investment but inflation is 3%, your real rate of return would be approximately 3%. This means you’re effectively gaining 3% in purchasing power, giving you a clearer picture of your investment’s true performance in today’s economy.