Question: Problem 10-16 Calculating Real Returns [LO 1] Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation Year 1 3.80 %

Problem 10-16 Calculating Real Returns [LO 1]

Consider the following table for a seven-year period:
Returns
Year U.S. Treasury Bills Inflation
Year 1 3.80 % 1.22 %
Year 2 3.65 2.36
Year 3 4.55 1.26
Year 4 4.97 0.68
Year 5 2.77 6.50
Year 6 1.65 9.42
Year 7 1.38 10.37
Required:

What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)
Average real return %

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