Consider the following table for an eight-year period:

Year	T-bill return	Inflation
Year 1	7.45%	8.55%
Year 2	8.84	12.18
Year 3	6.03	6.78
Year 4	5.87	5.02
Year 5	5.61	6.54
Year 6	8.44	8.86
Year 7	10.72	13.13
Year 8	12.90	12.36

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

%