Answer:
1.5%
Step-by-step explanation:
Below is the given values:
The expected inflation rate in Switzerland = 2.2%
The expected inflation rate in the U.S. = 1.6%
The risk-free yielding = 3.7%
The real rate of return on Swiss security = Risk-free yielding - Expected inflation in Switzerland
The real rate of return on Swiss security = 3.7% - 2.2%
The real rate of return on Swiss security = 1.5%