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Consider the following table for an eight-year period T-bill return 7.41% 8.64 5.99 5.67 5.57 8.24 10.68 12.70 8.59% 12.22 6.82 4.98 6.58 8.90 13.17

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Consider the following table for an eight-year period T-bill return 7.41% 8.64 5.99 5.67 5.57 8.24 10.68 12.70 8.59% 12.22 6.82 4.98 6.58 8.90 13.17 12.40 Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Average return for Treasury bills Average annual inflation rate 8.11 % 9.21 % Calculate the standard deviation of Treasury bill returns and inflation over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16) Standard deviation of Treasury bills Standard deviation of inflation 2.55 % 3.07 % Calculate the real return for each year. (A negative answer should be indicated by a minus sign. Leave no cells blank-be certain to enter "" wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Real return What is the average real return for Treasury bills? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,e.g,32.16.) Average real return for Treasury bills -0.99 %

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