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 3.90 %

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 3.90 % 1.24 %
Year 2 3.75 2.38
Year 3 4.65 1.28
Year 4 5.07 0.70
Year 5 2.87 6.52
Year 6 1.75 9.44
Year 7 1.48 10.39

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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