Question
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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