Question
Please show the work. thank you Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills
Please show the work. thank you Suppose we have the following Treasury bill returns and inflation rates over an eight year period: |
Year | Treasury Bills | Inflation |
1 | 7.55% | 9.02% |
2 | 8.29 | 12.69 |
3 | 6.15 | 7.24 |
4 | 5.43 | 5.20 |
5 | 5.83 | 7.10 |
6 | 8.04 | 9.44 |
7 | 11.00 | 13.72 |
8 | 12.58 | 13.05 |
a. | Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Treasury bills | 8.11 % |
Inflation | 9.68 % |
b. | Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Treasury bills | % |
Inflation | % |
c. | What was the average real return for Treasury bills over this period? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Average real return | % |
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