Consider the following table for a seven-year period: Returns Year U.S.TreasuryBills Inflation...

Question:

Consider the following table for a seven-year period:

Returns
Year U.S.TreasuryBills Inflation
1 3.75% 1.21%
2 3.60% 2.35%
3 4.50% 1.25%
4 4.92% .67%
5 2.72% 6.49%
6 1.60% 9.41%
7 1.33% 1.36%

What was the average real return for Treasury bills for this time period?

Average Real Return for Treasury Bills:

Treasury Bills are secure investments that are short-term in nature and offers returns over a relatively shorter period of time. They are normally issued by the Central Bank of a Country on behalf of the government.

Answer and Explanation:

{eq}\text{Average Real Return = Average Returns U.S. Treasury Bills - Average Inflation} {/eq}

{eq}\text{Average Returns U.S. Treasury Bills}=...

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