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Please answer all parts. Show work for a calculator not on excel. Thank you 22. Calculating Returns Refer to Table 10.1 in the text and
Please answer all parts. Show work for a calculator not on excel. Thank you
22. Calculating Returns Refer to Table 10.1 in the text and look at the period from 1973 through 1980. a. Calculate the arithmetic average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. b. Calculate the standard deviation of Treasury bill returns and inflation over this period. c. Calculate the real return for each year. What is the average real return for Treasury bills? d. Many people consider Treasury bills to be risk-free. What do these calculations tell you about the potential risks of Treasury billsStep by Step Solution
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