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Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 10.77 13.17 2 11.69

Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 10.77 13.17 2 11.69 16.35 3 9.38 10.62 4 8.65 8.27 5 9.20 10.62 6 11.56 13.11 7 14.45 17.33 8 16.33 17.27 a. Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period.

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