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Consider the following table for an eight-year period: Year T-bill return 12345678 7.42% Inflation 8.58% 8.69 12.21 6.00 6.81 5.72 4.99 5.58 6.57 8.29

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Consider the following table for an eight-year period: Year T-bill return 12345678 7.42% Inflation 8.58% 8.69 12.21 6.00 6.81 5.72 4.99 5.58 6.57 8.29 8.89 10.69 12.75 13.16 12.39 a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the standard deviation of Treasury bill returns and inflation over this time period. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the real return for each year. Note: A negative answer should be indicated by a minus sign. Leave no cells blank - be certain to enter "O" wherever required. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the average real return for Treasury bills? Note: 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.

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