Reference no: EM132034888

Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.36 % 8.64 % 2 8.39 12.27 3 5.94 6.87 4 5.42 4.93 5 5.52 6.63 6 7.99 8.95 7 10.63 13.22 8 12.45 12.45 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills 7.96 % Average annual inflation rate 9.25 % Calculate the standard deviation of Treasury bill returns and inflation over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation of Treasury bills 2.52 % Standard deviation of inflation 3.09 % Calculate the real return for each year. (A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Year Real return 1 % 2 % 3 % 4 % 5 % 6 % 7 % 8 0 % What is the average real return for Treasury bills? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return for Treasury bills -1.17 %.