Consider the following table for an eight-year period:

Year	T-bill return	Inflation
Year 1	7.38%	8.62%
Year 2	8.49	12.25
Year 3	5.96	6.85
Year 4	5.52	4.95
Year 5	5.54	6.61
Year 6	8.09	8.93
Year 7	10.65	13.20
Year 8	12.55	12.43

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	%

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 "0" wherever required. Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).)

Year	Real return
Year 1	%
Year 2	%
Year 3	%
Year 4	%
Year 5	%
Year 6	%
Year 7	%
Year 8	%

(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___________________

%

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