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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 10.15 12.25 2 11.05

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


Year Treasury Bills Inflation
1 10.15 12.25
2 11.05 15.67
3 8.76 9.98
4 8.05 7.69
5 8.58 9.98
6 10.92 12.45
7 13.79 16.65
8 15.63 16.55


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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