Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation % b. Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Treasury bills % Inflation % c. What was the average real return for Treasury bills over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return %
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Suppose we have the following Treasury bill returns and inflation rates over an eight year period: |
| Year | Treasury Bills | Inflation |
| 1 | 10.45% | 12.55% |
| 2 | 11.36 | 16.00 |
| 3 | 9.06 | 10.29 |
| 4 | 8.34 | 7.97 |
| 5 | 8.88 | 10.29 |
| 6 | 11.23 | 12.77 |
| 7 | 14.11 | 16.98 |
| 8 | 15.97 | 16.90 |
| a. |
Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Treasury bills | % |
| Inflation | % |
| b. |
Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Treasury bills | % |
| Inflation | % |
| c. |
What was the average real return for Treasury bills over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Average real return | % |
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