ppose we have the following Treasury bill returns and inflation rates over an eight year period:
YearTreasury BillsInflation
18.44% 10.21%
29.27 13.75
37.05 8.20
46.17 5.88
56.63 7.96
68.90 10.36
711.70 14.49
813.40 14.05
a.Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Round your answers to 2 decimal places. (e.g., 32.16))
Average return
Treasury bills
8.95
%
Inflation
10.61
%
b.Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))
Standard deviation
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 and round your final answer to 2 decimal places. (e.g., 32.16))
Average real return
%