In return calculations, most cases they apply inflation on real after-tax return and then divide by 1 - T to get the pre-tax nominal return. In 2009 CFAI q1 they divide the after-tax return by 1 - T to get the pre-tax return and then apply inflation to get the pre-tax nominal number. Can anyone explain please? Many thanks
Now I know why. because there is a 20% tax on withdrawal from investment portfolio never mind