Average real return, c.What was the average real return for

Average real return

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Reference no: EM13835151

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

Reference no: EM13835151

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