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10.16 Refer to Table 10.1 in the text and look at the period from 1973 through 1980. a. Calculate the average return for Treasury bills
10.16 Refer to Table 10.1 in the text and look at the period from 1973 through 1980. a. Calculate the average return for Treasury bills and the average annual inflation rate (CPI) for this period. b. Calculate the standard deviation of Treasury bill returns and inflation over this period. c. Many people consider Treasury bills to be risk free. What do these calculations tell you about the potential risks of Treasury bills? 10.16 Refer to Table 10.1 in the text and look at the period from 1973 through 1980. a. Calculate the average return for Treasury bills and the average annual inflation rate (CPI) for this period. b. Calculate the standard deviation of Treasury bill returns and inflation over this period. c. Many people consider Treasury bills to be risk free. What do these calculations tell you about the potential risks of Treasury bills
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