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 4 10 1 28 Year 2 3 95 2 42 Year 3 4 85 1 32 Year 4 5 27 0 74 Year 5 3 07 6 56 Year 6 1 95 9 48 Year 7 1 68 10 43 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 r ounded to 2 decimal places (e g , 32 16) )

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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 4.10 %

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	4.10	%	1.28	%
Year 2	3.95		2.42
Year 3	4.85		1.32
Year 4	5.27		0.74
Year 5	3.07		6.56
Year 6	1.95		9.48
Year 7	1.68		10.43

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).)

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