Question
Suppose we have the following Treasury bill returns and inflation rates over an eight year period: Year Treasury Bills Inflation 1 9.01% 10.86% 2 9.87
| Suppose we have the following Treasury bill returns and inflation rates over an eight year period: |
| Year | Treasury Bills | Inflation |
| 1 | 9.01% | 10.86% |
| 2 | 9.87 | 14.41 |
| 3 | 7.62 | 8.80 |
| 4 | 6.71 | 6.39 |
| 5 | 7.20 | 8.56 |
| 6 | 9.50 | 10.99 |
| 7 | 12.33 | 15.15 |
| 8 | 14.09 | 14.89 |
Calculate the standard deviation of Treasury bill returns and inflation over this period. What was the average real return for Treasury bills over this period?
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Multinational Finance
Authors: Kirt Butler
2nd Edition
0324004508, 978-0324004502
