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

%