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Suppose we have the following Treasury bill returns and inflation rates over an eight year period Inflation 10.86 14.41 8.80 6.39 8.56 10.99 15.15 14.89

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Suppose we have the following Treasury bill returns and inflation rates over an eight year period Inflation 10.86 14.41 8.80 6.39 8.56 10.99 15.15 14.89 Year Treasury Bills 9.01 9.87 7.62 6.71 7.20 9.50 12.33 14.09 2 3 5 6 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)) Treasury bills Inflation 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)) 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. Round your answer to 2 decimal places. (e.g. 32.16) Average real return

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