Reference no: EM13356060

Calculation of ARR for Treasury bills.

Refer to the following table:

Year	T-bill return	Inflation
1976	0.0507	0.0486
1977	0.0545	0.0670
1978	0.0764	0.0902
1979	0.1056	0.1329
1980	0.1210	0.1252
1981	0.1460	0.0892
1982	0.1094	0.0383
1983	0.0899	0.0379

Requirement 1:
Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)
Average Treasury bills return _____ percent
Average inflation _____ percent

Requirement 2:
Calculate the standard deviation of Treasury bills returns and over this period. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)
Standard deviation
T-bills _____ percent
Inflation _____ percent

Requirement 3:
Calculate the average real return for Treasury bills over this period. (Negative amount should be indicated by a minus sign. Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)
Average real return _____ percent