What was the average real return for treasury bills

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Reference no: EM132008483

Suppose we have the following Treasury bill returns and inflation rates over an eight year period:

Year	Treasury Bills	Inflation
1	7.55%	9.02%
2	8.29	12.69
3	6.15	7.24
4	5.43	5.20
5	5.83	7.10
6	8.04	9.44
7	11.00	13.72
8	12.58	13.05

a. Calculate the average return for Treasury bills and the average annual inflation rate 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 8.11 %
Inflation 9.68 %

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 2.53 %
Inflation 3.16 %

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: EM132008483

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