Consider the following table for an eight-year period:

Need answers for: Requirement 2, Requirement 3 (parts A and B)

Consider the following table for an eight-year period T-bill return nflation 8.67% Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 7.33% 8.24 5.91 5.27 5.49 7.84 10.60 12.30 12.30 6.90 4.90 6.66 8.98 13.25 12.48 Requirement 1: Calculate thevrage 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 7.87 0 % 9.27 0 % 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 2.90 % Standard deviation of inflation Requirement 3: (a) Calculate the real return for each year. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Year Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Real return 1.34 0 % -4.06 % -0.99 % 0.37 0 % 1.17 0% 1.14 0 % 2.65 % -0.18 % (b) What is the average real return for Treasury bills? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Average real return for Treasury bills 1.40 %