Suppose we have the following Treasury bill returns and inflation rates over an eight year period:

YearTreasury BillsInflation

18.44% 10.21%

29.27 13.75

37.05 8.20

46.17 5.88

56.63 7.96

68.90 10.36

711.70 14.49

813.40 14.05

a.

Calculate the average return for Treasury bills and the average annual inflation rate (consumer price index) for this period. (Round your answers to 2 decimal places. (e.g., 32.16))

Average return

Treasury bills

8.95

%

Inflation

10.61

%

b.

Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

Standard deviation

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 and round your final answer to 2 decimal places. (e.g., 32.16))

Average real return

%