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3 10100 points Consider the following table for the period from 1973 through 1980 1973 1974 1975 1976 1977 1978 1979 1980 7.99 5.87 5.07

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3 10100 points Consider the following table for the period from 1973 through 1980 1973 1974 1975 1976 1977 1978 1979 1980 7.99 5.87 5.07 5.45 7.64 10.56 12.10 8 71% 12.34 6.94 4.86 6.70 9.02 13.29 12.52 Requirement 1: 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 percentage rounded to 2 decimal places (e.g., 32.16).) Average return for Treasury bills Average annual inflation rate Requirement 2 Calculate the standard deviation of Treasury bill returns and inflation over this time period (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g. 32.16).) Standard deviation of Treasury bills Standard deviation of inflation Requ (a) Calculate the real return for each year. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16). Negative amounts should be indicated for ch.10 tpx 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 percentage rounded to 2 decimal places (e.g., 32.16).) al inflation rate Calculate the standard deviation of Treasury bill returns and inflation over this time period.(Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g. 32.16).) dard deviation of inflation (a) Calculate the real return for each year. (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16). Negative amounts should be indicated by a minus sign.) Real retun 1973 1974 1975 1976 1977 1978 1979 1980 (b) What is the average real return for Treasury bills? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g.. 32.16). Negative amount should be indicated by a minus sign.)

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