Respuesta :
Answer:
0.5%
Explanation:
The real rate of return is the nominal rate of return adjusted for inflation.
Real rate of return = nominal rate of return - inflation rate
3.5% - 3% = 0.5%
I hope my answer helps you
Answer:
The real return is approximately 0.5%
Explanation:
The real return can deduced from nominal return formula given below
Nominal return=real return+inflation rate
real return=nominal return-inflation rate
nominal return is 3.5%
inflation rate 3.0%
real return=3.5%-3.0%
real return=0.5%
The actual return on the treasury bills is 0.5% because the extra 3% is just a compensation rate for inflation over the duration of the investment ,but since it is a treasury bill, the risk of loss of investment is virtually non-existent
