What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return %

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates
Section: Chapter Questions
Problem 2IEE
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Consider the following table for a seven-year period:
Returns
Year
U.S. Treasury Bills Inflation
4.10%
1
-1.28%
2
3.95
-2.42
3
4.85
-1.32
4
5.27
0.74
5
3.07
-6.56
1.95
-9.48
7
1.68
-1.43
What was the average real return for Treasury bills for this time period? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Average real return
%
Transcribed Image Text:Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation 4.10% 1 -1.28% 2 3.95 -2.42 3 4.85 -1.32 4 5.27 0.74 5 3.07 -6.56 1.95 -9.48 7 1.68 -1.43 What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return %
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