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Consider the following table for an eight-year period: Year T-bill return Inflation 1 7.39 % 8.61 % 2 8.54 12.24 3 5.97 6.84 4 5.57

Consider the following table for an eight-year period:

Year T-bill return Inflation
1 7.39 % 8.61 %
2 8.54 12.24
3 5.97 6.84
4 5.57 4.96
5 5.55 6.60
6 8.14 8.92
7 10.66 13.19
8 12.60 12.42

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 %

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 %

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

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

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 %

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