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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 10.45% 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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