Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 2.70% per year. What is the real risk-free rate of return, r*? The cross-product term should be considered , i.e., if averaging is required, use the geometric average.

		4.56%
		3.68%
		4.19%
		4.65%
		4.15%