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

%