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Fred made the following rates of return on his portfolio over the past five years. The T-Bill rate and the inflation rate for each year

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Fred made the following rates of return on his portfolio over the past five years. The T-Bill rate and the inflation rate for each year are also shown. Based on this information, in which year did Fred have the highest real rate of return? Year 1 2 3 4 5 Portfolio Return 11.00% 8.00% 16.00% 12.00% 9.00% T-Bill rate 3.00% 4.00% 9.00% 6.00% 3.00% Inflation Rate 5.00% 3.00% 11.00% 6.00% 2.00% A) Year 1 B) Year 2 C) Year 3 D) Year 4 E) Year 5

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