Suppose we have the following Treasury bill returns and inflation rates over an eight year period:
| Year |
Treasury Bills |
Inflation |
| 1 |
11.47% |
14.07% |
| 2 |
12.41 |
17.11 |
| 3 |
10.08 |
11.34 |
| 4 |
9.33 |
8.93 |
| 5 |
9.90 |
11.34 |
| 6 |
12.28 |
13.85 |
| 7 |
15.19 |
18.09 |
| 8 |
17.11 |
18.07 |
|
Calculate the average return for Treasury bills and the average annual inflation rate for this period.
Treasury bills %
Inflation %
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
Treasury bills %
Inflation %
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)
Average real return %