Question
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 8.81% 10.60% 2 9.66
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: |
Year | Treasury Bills | Inflation |
1 | 8.81% | 10.60% |
2 | 9.66 | 14.18 |
3 | 7.42 | 8.59 |
4 | 6.52 | 6.21 |
5 | 7.00 | 8.35 |
6 | 9.29 | 10.77 |
7 | 12.11 | 14.92 |
8 | 13.85 | 14.60 |
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= 9.33 | % |
Inflation= 11.03 | % |
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= 2.55 | % |
Inflation= 3.26 | % |
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= -1.70 | % |
Please help it tells me that number C is inccorect
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