Question
Suppose we have the following Treasury bill returns and inflation rates over an eight-year period: Year Treasury Bills Inflation 1 10.45% 12.55% 2 11.36 16.00
Suppose we have the following Treasury bill returns and inflation rates over an eight-year period:
| Year | Treasury Bills | Inflation |
| 1 | 10.45% | 12.55% |
| 2 | 11.36 | 16.00 |
| 3 | 9.06 | 10.29 |
| 4 | 8.34 | 7.97 |
| 5 | 8.88 | 10.29 |
| 6 | 11.23 | 12.77 |
| 7 | 14.11 | 16.98 |
| 8 | 15.97 | 16.90 |
| a. | Calculate the average return for Treasury bills and the average annual inflation rate for this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the standard deviation of Treasury bill returns and inflation over this period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
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Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
23rd Edition
978-0324662962
