Task: Calculating Returns
Refer to the following table:
Year T-Bill Return Inflation
|
1973
|
0.0729
|
0.0871
|
|
1974
|
0.0799
|
0.1234
|
|
1975
|
0.0587
|
0.0694
|
|
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
|
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 answers to 2 decimal places, e.g. 32.16.)
Average Treasury bill return percent
Average inflation percent
Requirement 2:
Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not include the percent sign (%). Round 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 answers to 2 decimal places, e.g. 32.16.)
Average real return ______ percent