Show calculations and step by step. No excel please

Calculating Returns Refer to L Table 10.1 (pictures attached) 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 bills?

\begin{tabular}{|c|c|c|c|c|} \hline 1956 & 6.56 & -5.59 & 2.46 & 2.86 \\ \hline 1957 & -10.78 & 7.46 & 3.14 & 3.02 \\ \hline 1958 & 43.36 & -6.09 & 1.54 & 1.76 \\ \hline 1959 & 11.96 & -2.26 & 2.95 & 1.50 \\ \hline 1960 & .47 & 13.78 & 2.66 & 1.48 \\ \hline 1961 & 26.89 & .97 & 2.13 & .67 \\ \hline 1962 & -8.73 & 6.89 & 2.73 & 1.22 \\ \hline 1963 & 22.80 & 1.21 & 3.12 & 1.65 \\ \hline 1964 & 16.48 & 3.51 & 3.54 & 1.19 \\ \hline 1965 & 12.45 & .71 & 3.93 & 1.92 \\ \hline 1966 & -10.06 & 3.65 & 4.76 & 3.35 \\ \hline 1967 & 23.98 & -9.18 & 4.21 & 3.04 \\ \hline 1968 & 11.06 & -.26 & 5.21 & 4.72 \\ \hline 1969 & -8.50 & -5.07 & 6.58 & 6.11 \\ \hline 1970 & 3.86 & 12.11 & 6.52 & 5.49 \\ \hline 1971 & 14.30 & 13.23 & 4.39 & 3.36 \\ \hline 1972 & 19.00 & 5.69 & 3.84 & 3.41 \\ \hline 1973 & -14.69 & -1.11 & 6.93 & 8.80 \\ \hline 1974 & -26.47 & 4.35 & 8.00 & 12.20 \\ \hline 1975 & 37.23 & 9.20 & 5.80 & 7.01 \\ \hline 1976 & 23.93 & 16.75 & 5.08 & 4.81 \\ \hline 1977 & -7.16 & -.69 & 5.12 & 6.77 \\ \hline 1978 & 6.57 & -1.18 & 7.18 & 9.03 \\ \hline 1979 & 18.61 & -1.23 & 10.38 & 13.31 \\ \hline 1980 & 32.50 & -3.95 & 11.24 & 12.40 \\ \hline 1981 & -4.92 & 1.86 & 14.71 & 8.94 \\ \hline 1982 & 21.55 & 40.36 & 10.54 & 3.87 \\ \hline 1983 & 22.56 & .65 & 8.80 & 3.80 \\ \hline 1984 & 6.27 & 15.48 & 9.85 & 3.95 \\ \hline 1985 & 31.73 & 30.97 & 7.72 & 3.77 \\ \hline 1986 & 18.67 & 24.53 & 6.16 & 1.13 \\ \hline 1987 & 5.25 & -2.71 & 5.47 & 4.41 \\ \hline 1988 & 16.61 & 9.67 & 6.35 & 4.42 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline 1989 & 31.69 & 18.11 & 8.37 & 4.65 \\ \hline 1990 & -3.10 & 6.18 & 7.81 & 6.11 \\ \hline 1991 & 30.47 & 19.30 & 5.60 & 3.06 \\ \hline 1992 & 7.62 & 8.05 & 3.51 & 2.90 \\ \hline 1993 & 10.08 & 18.24 & 2.90 & 2.75 \\ \hline 1994 & 1.32 & -7.77 & 3.90 & 2.67 \\ \hline 1995 & 37.58 & 31.67 & 5.60 & 2.54 \\ \hline 1996 & 22.96 & -.93 & 5.21 & 3.32 \\ \hline 1997 & 33.36 & 15.85 & 5.26 & 1.70 \\ \hline 1998 & 28.58 & 13.06 & 4.86 & 1.61 \\ \hline 1999 & 21.04 & -8.96 & 4.68 & 2.68 \\ \hline 2000 & -9.10 & 21.48 & 5.89 & 3.39 \\ \hline 2001 & -11.89 & 3.70 & 3.83 & 1.55 \\ \hline 2002 & -22.10 & 17.84 & 1.65 & 2.38 \\ \hline 2003 & 28.68 & 1.45 & 1.02 & 1.88 \\ \hline 2004 & 10.88 & 8.51 & 1.20 & 3.26 \\ \hline 2005 & 4.91 & 7.81 & 2.98 & 3.42 \\ \hline 2006 & 15.79 & 1.19 & 4.80 & 2.54 \\ \hline 2007 & 5.49 & 9.88 & 4.66 & 4.08 \\ \hline 2008 & -37.00 & 25.87 & 1.60 & .09 \\ \hline 2009 & 26.46 & -14.90 & .10 & 2.72 \\ \hline 2010 & 15.06 & 10.14 & .12 & 1.50 \\ \hline 2011 & 2.11 & 27.10 & .04 & 2.96 \\ \hline 2012 & 16.00 & 3.43 & .06 & 1.74 \\ \hline 2013 & 32.39 & -12.78 & .02 & 1.51 \\ \hline 2014 & 13.69 & 24.71 & .02 & .76 \\ \hline 2015 & 1.38 & -.65 & .02 & .73 \\ \hline 2016 & 11.96 & -1.75 & .20 & 2.07 \\ \hline 2017 & 21.83 & 6.24 & .80 & 2.11 \\ \hline 2018 & -4.38 & -.57 & 1.81 & 1.91 \\ \hline 2019 & 31.49 & 12.16 & 2.14 & 2.29 \\ \hline 2020 & 18.40 & 15.40 & .44 & 1.36 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Year & Large-Company Stocks & Long-Term Govermment Bonds & U.S. Treasmy Bills & Consumer Price Index \\ \hline 1926 & 11.62% & 7.77% & 3.27% & 1.49% \\ \hline 1927 & 37.49 & 8.93 & 3.12 & -2.08 \\ \hline 1928 & 43.61 & .10 & 3.56 & -.97 \\ \hline 1929 & -8.42 & 3.42 & 4.75 & .20 \\ \hline 1930 & -24.90 & 4.66 & 2.41 & -6.03 \\ \hline 1931 & -43.34 & -5.31 & 1.07 & -9.52 \\ \hline 1932 & -8.19 & 16.84 & .96 & -10.30 \\ \hline 1933 & 53.99 & -.07 & .30 & .51 \\ \hline 1934 & -1.44 & 10.03 & .16 & 2.03 \\ \hline 1935 & 47.67 & 4.98 & .17 & 2.99 \\ \hline 1936 & 33.92 & 7.52 & .18 & 1.21 \\ \hline 1937 & -35.03 & .23 & .31 & 3.10 \\ \hline 1938 & 31.12 & 5.53 & -.02 & -2.78 \\ \hline 1939 & -.41 & 5.94 & .02 & -.48 \\ \hline 1940 & -9.78 & 6.09 & .00 & .96 \\ \hline 1941 & -11.59 & 93 & .06 & 9.72 \\ \hline 1942 & 20.34 & 3.22 & .27 & 9.29 \\ \hline 1943 & 25.90 & 2.08 & .35 & 3.16 \\ \hline 1944 & 19.75 & 2.81 & .33 & 2.11 \\ \hline 1945 & 36.44 & 10.73 & .33 & 2.25 \\ \hline 1946 & -8.07 & -.10 & .35 & 18.16 \\ \hline 1947 & 5.71 & -2.62 & .50 & 9.01 \\ \hline 1948 & 5.50 & 3.40 & .81 & 2.71 \\ \hline 1949 & 18.79 & 6.45 & 1.10 & -1.80 \\ \hline 1950 & 31.71 & .06 & 1.20 & 5.79 \\ \hline 1951 & 24.02 & -3.93 & 1.49 & 5.87 \\ \hline 1952 & 18.37 & 1.16 & 1.66 & .88 \\ \hline 1953 & -.99 & 3.64 & 1.82 & .62 \\ \hline 1954 & 52.62 & 7.19 & .86 & -.50 \\ \hline 1955 & 31.56 & -1.29 & 1.57 & .37 \\ \hline \end{tabular}