What was the average real return for treasury bills

Assignment Help Financial Management

Reference no: EM131865955

Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 7.70 9.20 2 8.46 12.88 3 6.31 7.41 4 5.48 5.24 5 5.89 7.17 6 8.11 9.52 7 11.10 13.84 8 12.70 13.19 a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) 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 %

Reference no: EM131865955

Questions Cloud

Where will the case be tried : The brokerage firm of E. F. Hutton was charged with federal criminal violations of interstate funds transfers.

Critically analyze ethical dilemmas in the workplace : Case needs to critically analyze ethical dilemmas in the workplace. Specifically, you are to identify ethical dilemmas in an organization, identify the problems

Show effects of transactions in a horizontal statements : Rainey Enterprises loaned $40,000 to Small Co. on June 1, 2018, for one year at 6 percent interest. Show effects of transactions in a horizontal statements

Explain why people get sun burned : Explain why people get sun burned. How does age become a factor for this problem?

What was the average real return for treasury bills : What was the average real return for Treasury bills over this period? Calculate the standard deviation of Treasury bill returns and inflation over this period.

Myelination of central and peripheral axons : The myelination of central and peripheral axons occurs rapidly through the first few years of life.

Put aside amount of money sufficient : Sarah wants to put aside an amount of money sufficient to provide an income of $450 a month for a period of 5 years.

Describe the pressures that affect glomerular filtration : Describe the pressures that affect glomerular filtration, and describe the effects of drinking too much beer on the urinary system.

Find the project net present value : If the interest rate is 9%, find the project's Net Present Value (NPV). What conclusions can you draw from the graph?

User Account

All Pages